AI spending of course a key focus during earnings this quarter. Apple, Apple, Meta, Alphabet all reporting a massive jump in AI spend. Total capex spend reaching 116 billion leads to plenty of bubble talk on the street as you know.But our next guest says those spending levels are in fact sustainable. Let's bring in Goldman Sachs economist Joseph Briggs to talk about it. Widely watched report that she put out a few days ago.Welcome. Good to see you. >> Great to be here.>> So you're you're sort of taking a lo ...

AI Spending & Investment - AI spending is a key focus during earnings, with Apple, Meta, and Alphabet reporting massive jumps in AI spend, leading to a total capex spend reaching $116 billion [1] - Goldman Sachs estimates current AI spending in the US is a little bit below 1% of GDP [3] - AI investment cycle could reach around 2% of GDP [5] - Current annualized AI spending is estimated between $250 billion and $300 billion, based on hyperscaler capex, revenue of companies exposed to AI buildout, and national accounts data [8] - AI spending levels are not exceeding historical levels when normalized by GDP [9] Productivity & Economic Impact - AI is expected to lead to a 15% gross uplift to labor productivity following full adoption, potentially creating $8 trillion in economic value [9][10] - The expected 15% productivity boost from AI is broadly in line with the internet era and the adoption of electric motors in the early 1900s [10] - Goldman Sachs forecasts the first boost to GDP from AI in 2027, peaking at around 05% uplift to overall GDP in the 2030s [13] AI Adoption - Only 10% of companies report using AI for regular production, indicating adoption levels are too small to impact macro statistics yet [11] - Among Goldman Sachs investment banking clients, 37% are starting to use AI for regular production, suggesting increasing adoption among US corporates [12] - The tech sector has seen a slowdown in job growth over the last year, potentially indicating early labor market impacts from AI [14]