Goldman Sachs analysts have noted that while consumers are embracing AI, businesses are still grappling with its implementation. They are questioning whether the surge in AI spending has outpaced actual returns. According to McKinsey, many companies talk about the benefits of AI but are not yet experiencing significant payoffs. While AI is revolutionizing consumer technology, its impact on businesses is lagging behind, as highlighted by the analysts at Goldman Sachs.
During a recent episode of Goldman Sachs’ podcast “Exchanges,” Kash Rangan, a US software equity research analyst, pointed out that although consumer applications like ChatGPT have demonstrated the value of AI, adoption at the enterprise level has been slower. He expressed disappointment that companies are not as advanced in AI adoption as he had anticipated.
Eric Sheridan, a US internet equity research analyst, mentioned that the rapid expansion of AI infrastructure has exceeded expectations. However, doubts are arising among investors about whether the substantial investments in AI will yield commensurate returns in the long run.
Nvidia’s projection of $3 trillion to $4 trillion in cumulative AI infrastructure spending by 2030 has raised concerns among investors. Sheridan emphasized that many investors struggle to justify such massive spending unless AI becomes a primary driver of economic output.
The concerns raised by the Goldman analysts reflect broader apprehensions in the market about excessive AI spending contributing to record highs in the S&P 500 and Nasdaq. Last week, stock prices retreated amid fears that market valuations may have outpaced underlying fundamentals.
McKinsey’s recent report on the State of AI 2025 revealed that while a high percentage of companies claim to use AI in various business functions, only a fraction have successfully integrated it across their entire organization. Although most organizations acknowledge that AI fuels innovation, fewer report tangible financial benefits.
McKinsey consultants highlighted that despite widespread adoption of AI tools, many companies have not fully integrated them into their operations to realize substantial enterprise-level advantages.