Posted 1/7/2024, 4:23:20 PM
Despite AI Hopes, Business Investment Lags as Firms Wait on Productivity Gains
- Despite optimism, business investment (capex) in AI and technology is growing slowly, at just 2.5% for S&P 500 firms excluding big tech
- Goldman Sachs capex tracker shows spending falling 4% year-over-year, with information tech spending also falling
- OECD data shows global investment growing more slowly than pre-pandemic
- With weak investment, there are no signs yet of productivity improvements
- AI's impact may take time, just as the personal computer's impact took years after key innovations