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AI needs $760 billion in annual profit to justify $7 trillion infra investment by 2030: McKinsey

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AI needs $760 billion in annual profit to justify $7 trillion infra investment by 2030: McKinsey

Business News Tech AI AI needs $760 billion in annual profit to justify $7 trillion infra investment by 2030: McKinsey

AI needs $760 billion in annual profit to justify $7 trillion infra investment by 2030: McKinsey

While new AI businesses, products and services will contribute to returns, a significant share of the value will need to come from companies redesigning their work processes and improving productivity.

Artificial Intelligence (AI) infrastructure investments are estimated to reach USD 7 trillion by 2030, requiring the technology to generate around USD 760 billion in annual profit pools to justify the scale of spending, according to a report by McKinsey & Company. The report said that as AI enters a new phase, the focus is shifting from what the technology can do to how businesses can use it to generate real economic value. While new AI businesses, products and services will contribute to returns, a significant share of the value will need to come from companies redesigning their work processes and improving productivity.

However, many organisations are still measuring AI adoption rather than its financial benefits. Companies track the number of AI users, copilots deployed and tokens consumed, but these measures do not establish whether the technology is generating economic value. It stated, "By 2030, an estimated $7 trillion in capital will have been invested into AI infrastructure; to justify that investment, the technology needs to generate roughly $760 billion in annual profit pools". The report noted that businesses are increasingly facing the challenge of rising AI costs and need to determine where the technology can perform tasks at an acceptable level of quality and at a sustainable cost.


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