The world is currently living in an era of technological transformation, where artificial intelligence constitutes a qualitative shift in the field of technology and its impact on various aspects of life is accelerating.
Developments in the field of artificial intelligence are accelerating remarkably, as automation and big data analysis are an integral part of economic systems.
This massive digital transformation poses new challenges and opportunities, as it seems clear that artificial intelligence will have a direct impact on productivity, employment, and even traditional economic business models.
A recent report published by “Business Insider” shed light on an aspect of the effects of artificial intelligence on the markets, focusing on “Wall Street”, where the huge boom achieved by the shares of artificial intelligence companies, and monitoring a group of previous analyzes by market experts regarding their expectations of the levels that the indicators can reach. America and the American economy in general as a result of this boom, and then its repercussions on the global economy.
Are markets overvaluing AI companies?
Experts unanimously agreed that artificial intelligence could give a major boost to the economy for years, and that investors may be on the verge of a major rise in the stock market.
Fundstrat head of research Tom Lee: The S&P 500 could continue to rise to 5,200 this year, which would mean an increase of at least 9 percent for 2024.
Goldman Sachs: Artificial intelligence can increase global GDP by 1.5 percent over the next ten years.
Morgan Stanley: S&P 500 companies could see a significant boost in profits due to artificial intelligence.
Gene Munster of Deepwater Asset Management believes the AI-fueled bull market could continue for the next three to five years.
Chief investment strategist at Waddell & Associates, David Waddell: The AI mania does not look like a stock bubble. AI is the oxygen of business, and it will spread everywhere. “It’s not a 10-month story, it’s a 10-year story.”
These comments reveal part of the momentum that artificial intelligence companies are creating in the American economy. In addition to the broad momentum raised by the various applications and uses of artificial intelligence in various sectors, which gives a strong boost to the global economy.
Increase profits and meet customer needs
Technological development specialist, Hisham Al-Natour, said in exclusive statements to “Iqtisad Sky News Arabia” website:
Artificial intelligence is a new technological revolution that has changed the fields of industry, agriculture, health, education, business and economics.
In this context, experts expect that artificial intelligence could add $15 to $20 trillion to the global economy by 2030.
Artificial intelligence has the ability to analyze data extensively and thoughtfully to give correct results with less time and effort. It can play a broad role in many fields and sectors, with implications for the global economy.
Competitive economic advantages
He adds: The leading countries in the field of artificial intelligence enjoy great competitive economic advantages, including:
Increasing productivity and creativity, by transforming various practices from traditional to purely technological and digital.
Improving the efficiency of operations through improved data and better decision-making, which helps save time and effort and increase profits.
Reducing costs as a result of reducing human labor in some unskilled jobs.
Promote innovation by developing new products and providing services that better meet customer needs.
Opening new horizons for research and development by creating new job opportunities in many fields, such as software development and data analysis.
Creating new fields in institutes and universities to develop new educational specializations.
Impact on the labor market through the disappearance of routine jobs, which leads to temporary unemployment, and the emergence of jobs that require new skills, which causes fluctuations in the labor market.
anti-Corruption.
Promoting international trade.
Facilitating the exchange of goods and services.
Developing medicines in the field of health and improving the provision of health services.
AI can be used to improve crop management, control pests and diseases, and improve productivity.
Production efficiency and introduction of new products.
Al-Natour continues: Countries that do not pay attention to this field may lose great economic opportunities and face difficulty in confronting global developments. They also face greater challenges than in the past by adopting this technology for some countries, including the lack of digital infrastructure and skilled personnel, in addition to the lack of skills and the absence of a major investment role. In this area.
While on the other hand, the countries that most use artificial intelligence are the ones that encourage investment in it and put in place laws regulating its use, and they are the ones that reap the benefits of the technology the most, according to Al-Natour, who stresses that in order for countries to fully benefit from artificial intelligence and achieve those broader economic returns It must take into account several factors, including:
Research and development in this field.
Establish laws that regulate the responsible use of artificial intelligence.
Providing training courses to help workers adapt to modern technology.
Addressing challenges caused by AI such as bias and unemployment.
Applying laws and legislation fairly.
Possible bubble!
But he does not deny the possibility that artificial intelligence will be a “bubble” like the 2000 bubble, for several reasons:
Shares of artificial intelligence companies are rising widely and rapidly.
There is a lot of speculation in artificial intelligence stocks without a real understanding of its technology or its true value to some.
Lack of information about artificial intelligence technologies, especially with many investors’ ignorance of artificial intelligence technology, which makes them vulnerable to deception by some companies that exaggerate their capabilities.
A slowdown in the global economy could reduce companies’ investment in AI technologies, causing their shares to decline.
Al-Natour stresses the need for companies to diversify their investments to reduce these risks, and not to invest in a company without understanding its true technologies.
The CEO of VI Markets, Ahmed Moati, told the “Eqtisad Sky News Arabia” website that artificial intelligence is witnessing a major boom at the present time, to the point that the market value of the American company NVIDIA has exceeded the market value of Aramco.
He adds: Artificial intelligence increases the productivity of the countries that entered this race, led by the United States of America, in addition to the UAE, which is one of the countries that most uses artificial intelligence, and which played an important role in its use.
Moati points out that artificial intelligence:
It increases the growth rate of countries that started using it by 1% to 2%.
It contributes to increasing production and operating efficiency.
It leads to reducing corporate expenses.
Regarding the negative “economic” effects of artificial intelligence, he confirms that artificial intelligence will reduce employment processes and lay off a large number of workers, as happened in Meta, Amazon, Alphabet, and many other companies.
He points out that the world will witness a trade war between the United States of America and China because of artificial intelligence.
The CEO of VI Markets points out that artificial intelligence will not be a new bubble; Because the United States benefited from the dot-com crisis that occurred in the year 2000, and the mortgage crisis in 2008, and the United States also began to pave the way for the transfer of American companies from China to India and Germany.
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