A recent shift in sentiment about artificial intelligence (AI) indicates that it may drive significant productivity gains and corporate profits, challenging previous warnings of an AI bubble. Notably, a report from PwC suggested AI could yield a fourfold productivity increase, while MIT forecasts up to a 95% task completion success rate by 2029. Furthermore, Bank of America reported that its AI tool, “Erica,” has handled 30 billion client interactions.
Despite concerns from financial experts, including Richard Bernstein, CIO of Richard Bernstein Advisors overseeing $19 billion in assets, analysts from Goldman Sachs have turned bullish on AI’s potential. Goldman now expects AI to lower software costs and expand the software market. As a corollary, investment vehicles like the BlackRock Technology and Private Equity Term Trust (BTX) are being highlighted, offering a 9.3% dividend and trading at a 14.9% discount to NAV.
