- AI technology could boost S&P 500 profits by 30% or more over the next decade, a Goldman strategist said.
- "The real source of optimism now is productivity enhancements through artificial intelligence," Ben Snider said.
- Artificial-intelligence technology has boomed in 2023 thanks to the debut of large language tools.
Artificial intelligence technology could boost S&P 500 profits to new highs over the next decade, according to a senior strategist at Goldman Sachs.
"Over the next 10 years, AI could increase productivity by 1.5% per year. And that could increase S&P 500 profits by 30% or more over the next decade," the Wall Street bank's Ben Snider told CNBC on Thursday.
AI has seen a huge surge in popularity since the debut of OpenAI's ChatGPT, with stocks including Santa Clara-based chipmaker Nvidia greatly benefitting from the hype.
"A lot of the favorable factors that led to that expansion (of S&P 500) earnings seem to be reversing," Snider said. "But the real source of optimism now is productivity enhancements through artificial intelligence," he added.
With AI dominating interest, it's got investors bullish about the future of productivity. Billionaire investor Paul Tudor Jones recently said that the introduction of large language AI tools like ChatGPT could unleash a "productivity boom" in the economy that helps drive inflation lower and the stock market higher.
Meanwhile Goldman's chief information officer said financial firms can use AI to "superhumanize" talent.
"It's clear to most investors that the immediate winners are in the technology sector," Snider said. "The real question for investors is who are going to be winners down the road," Snider added.
