Goldman Sachs Reveals Sluggish AI Adoption Among US Firms Despite Promising Productivity Gains

Goldman Sachs has released a report highlighting the slow adoption of artificial intelligence (AI) among US companies. Despite the technology's potential to revolutionize industries, only 6.1% of American businesses are currently using AI to produce their products or services. This figure represents a marginal increase from 5.9% in the previous quarter, indicating a cautious approach to AI integration across various sectors.

Sector-Specific Adoption Rates

The finance and insurance industries are leading the charge in AI adoption, while other sectors such as information technology, manufacturing, and education have experienced a decline in AI implementation. This disparity suggests that certain industries may be finding more immediate applications for AI technology, while others are still exploring its potential benefits.

Enterprise vs. SMB Adoption

Large enterprises with over 250 employees are showing higher AI adoption rates, reaching 10% and expected to increase further in the coming months. In contrast, small and medium-sized businesses (SMBs) have doubled their AI adoption rate over the past year but continue to face significant challenges, particularly in cybersecurity and identifying beneficial use cases for the technology.

Productivity Gains and ROI

Despite the slow overall adoption, companies that have successfully integrated AI report significant productivity gains:

• Academic studies show a 23% increase in productivity.
• Company insights highlight improvements of around 30%.

However, concerns about the return on investment (ROI) persist. A recent PYMNTS Intelligence study revealed that only 13% of CFOs rated their AI investments as delivering a "very positive" ROI, a notable decline from 27% in March.

This shift in ROI sentiment underscores a critical challenge: while businesses recognize AI's potential, many are still navigating how to maximize its financial impact.

Future Outlook

Goldman Sachs forecasts sustained growth in AI investment, particularly within the semiconductor industry. Analysts predict a 37% revenue increase in the sector by the end of 2025.

The AI hardware market is projected to reach $139 billion, while the semiconductor market is expected to hit $187 billion, together accounting for approximately 1.2% of US GDP.

Although current adoption rates remain low, Goldman Sachs Research anticipates that AI could begin to have a measurable impact on US GDP by 2027, with other economies following in subsequent years.

The slow adoption is attributed to several key factors:

• Limited knowledge and understanding of AI
• Privacy and security concerns
• Hesitation to invest in early-stage technology

As organizations adopt a cautious, deliberate approach to AI integration to "get it right," the full impact on productivity and GDP growth is expected to unfold over a longer timeline—potentially three to ten years.

Conclusion

While AI adoption in the US remains limited, its long-term potential for enhancing productivity and driving economic growth is evident. As companies address implementation challenges and ROI concerns, AI integration is likely to accelerate across various sectors in the coming years.