Hey Amy, I heard something about Goldman Sachs and AI. What's going on?

Hi Sam! Goldman Sachs, a big bank, is asking questions about how much money companies are spending on AI.

Wow, are companies spending a lot on AI?

Yes, they are! Goldman Sachs says companies might spend over $1 trillion on AI in the coming years. That's a huge amount of money!

A trillion dollars? That's like... a million millions, right? Why are they spending so much?

Companies think AI will help them make more money in the future. But Goldman Sachs is worried that it might not work out that way.

Oh, I see. So it's like buying a really expensive toy, hoping it will help you make money, but not being sure if it will?

That's a great way to think about it, Sam! Goldman Sachs is wondering if this 'expensive toy' will actually help companies enough to be worth all that money.

But AI is so cool! Isn't it helping people already?

You're right, AI is cool and it is helping in some ways. But right now, only about 5 out of 100 companies are actually using AI to make things or provide services.

Only 5 out of 100? That's not very many. Why aren't more companies using it if they're spending so much money on it?

Good question! It takes time to figure out how to use new technology. Companies are still learning how to use AI in ways that really help their business.

I get it. So what happens if AI doesn't end up being worth all that money?

If that happens, the companies that spent a lot on AI might lose money. Their stock prices might go down, which means the people who invested in these companies could lose money too.

Oh no! That sounds risky. Is there any good news?

Well, some experts think AI will eventually pay off, even if it takes a while. And even Goldman Sachs says that this spending isn't as crazy as some other times in history when companies spent too much on new technology.

That's good to hear. So what should companies do?

Goldman Sachs says companies need to show that AI is helping them make more money. If they can do that, people will feel better about all the money being spent on AI.

I hope it works out! It would be cool to see AI doing more things. Thanks for explaining, Amy!