{"id":13489,"date":"2024-09-23T15:10:59","date_gmt":"2024-09-23T15:10:59","guid":{"rendered":"https:\/\/medexperts.pro\/?p=13489"},"modified":"2024-09-23T15:23:33","modified_gmt":"2024-09-23T15:23:33","slug":"will-a-i-be-a-bust-a-wall-street-skeptic-rings-the-alarm","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=13489","title":{"rendered":"Will A.I. Be a Bust? A Wall Street Skeptic Rings the Alarm."},"content":{"rendered":"
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Jim Covello, Goldman Sachs\u2019s head of stock research, warned that building too much of what the world doesn\u2019t need \u201ctypically ends badly.\u201d<\/p>\n

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As Jim Covello\u2019s car barreled up highway 101 from San Jose to San Francisco this month, he counted the billboards about artificial intelligence. The nearly 40 signs he passed, including one that promoted something called Writer Enterprise AI and another for Speech AI, were fresh evidence, he thought, of an economic bubble.<\/p>\n

\u201cNot that long ago, they were all crypto,\u201d Mr. Covello said of the billboards. \u201cAnd now they\u2019re all A.I.\u201d<\/p>\n

Mr. Covello, the head of stock research at Goldman Sachs, has become Wall Street\u2019s leading A.I. skeptic. Three months ago, he jolted markets with a research paper<\/a> that challenged whether businesses would see a sufficient return on what by some estimates could be $1 trillion in A.I. spending in the coming years. He said that generative artificial intelligence, which can summarize text and write software code, makes so many mistakes that it was questionable whether it would ever reliably solve complex problems.<\/p>\n

The Goldman paper landed days after a partner at Sequoia Capital, a venture firm, raised similar questions<\/a> in a blog post about A.I. Their skepticism marked a turning point for A.I.-related stocks, leading to a reassessment of Wall Street\u2019s hottest trade.<\/p>\n<\/div>\n<\/div>\n

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Goldman\u2019s basket of A.I. stocks, which is managed by a separate arm of the firm and includes Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta and Oracle, has declined 7 percent from its peak on July 10, as investors and business leaders debate whether A.I. can justify its staggering costs.<\/p>\n

The pause has come early in the A.I. arms race. The tech industry has a history of spending big to deliver technology transitions, as it did during the personal computer and internet revolutions. Those build outs spanned five years or more before there was a reckoning.<\/p>\n

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Jim Covello, Goldman Sachs\u2019s head of stock research, warned that building too much of what the world doesn\u2019t need \u201ctypically ends badly.\u201dAs Jim Covello\u2019s car barreled up highway 101 from San Jose to San Francisco this month, he counted the billboards about artificial intelligence. The nearly 40 signs he passed, including one that promoted something called Writer Enterprise AI and another for Speech AI, were fresh evidence, he thought, of an economic bubble.\u201cNot that long ago, they were all crypto,\u201d Mr. Covello said of the billboards. \u201cAnd now they\u2019re all A.I.\u201dMr. Covello, the head of stock research at Goldman Sachs, has become Wall Street\u2019s leading A.I. skeptic. Three months ago, he jolted markets with a research paper that challenged whether businesses would see a sufficient return on what by some estimates could be $1 trillion in A.I. spending in the coming years. He said that generative artificial intelligence, which can summarize text and write software code, makes so many mistakes that it was questionable whether it would ever reliably solve complex problems.The Goldman paper landed days after a partner at Sequoia Capital, a venture firm, raised similar questions in a blog post about A.I. Their skepticism marked a turning point for A.I.-related stocks, leading to a reassessment of Wall Street\u2019s hottest trade.Goldman\u2019s basket of A.I. stocks, which is managed by a separate arm of the firm and includes Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta and Oracle, has declined 7 percent from its peak on July 10, as investors and business leaders debate whether A.I. can justify its staggering costs.The pause has come early in the A.I. arms race. The tech industry has a history of spending big to deliver technology transitions, as it did during the personal computer and internet revolutions. Those build outs spanned five years or more before there was a reckoning.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and\u00a0log into\u00a0your Times account, or\u00a0subscribe\u00a0for all of The Times.Thank you for your patience while we verify access.Already a subscriber?\u00a0Log in.Want all of The Times?\u00a0Subscribe.<\/p>\n","protected":false},"author":1,"featured_media":13491,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-13489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/13489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13489"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/13489\/revisions"}],"predecessor-version":[{"id":13492,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/13489\/revisions\/13492"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/13491"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}