Goldman Strategists See Potential Profit Boom From AI
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Artificial intelligence offers the biggest potential long-term support for US profit margins, according to Goldman Sachs Group Inc. strategists, who add that there’s high uncertainty around AI’s impact.
AI can boost net margins by nearly 400 basis points over a decade, the strategists, led by Ben Snider, said in a note. This contrasts with other mounting headwinds, such as a potential recession, interest rates, elevated inventory levels and inflation, which make significant near-term margin expansion “unlikely,” they said.