AI is winning over consumers — but it's way behind with businesses, say Goldman Sachs analysts

Artificial intelligence is reshaping consumer technology, yet its integration into businesses is noticeably lagging, according to recent insights from Goldman Sachs analysts. Kash Rangan, a software equity research analyst at the firm, shared his observations during an episode of Goldman Sachs' "Exchanges" podcast. Rangan highlighted the rapid consumer uptake of AI applications, such as ChatGPT and Claude, showcasing their potential. However, he noted a stark difference at the enterprise level, where AI adoption remains below expectations. "We're not where we anticipated to be in terms of AI implementation within companies," Rangan remarked, indicating that progress has stagnated compared to six to nine months ago. Eric Sheridan, another equity research analyst, pointed out a surprising surge in AI infrastructure investment, driven by the demand for computing power from generative AI models like ChatGPT and Google Gemini. This increased investment has led to concerns among investors regarding whether the expected returns will justify the significant expenditures. Sheridan referenced Nvidia's prediction of up to $4 trillion in cumulative AI infrastructure spending by the decade's end, which raises questions about the viability of such investments. Investor sentiment has been cautious, particularly as AI-related spending has contributed to record highs in the S&P 500 and Nasdaq. Last week, markets experienced a pullback amid worries that the stock performance may not align with underlying economic fundamentals. This disconnect between enthusiasm and practical implementation mirrors findings from McKinsey's recent State of AI 2025 report. The study revealed that while 88% of surveyed companies utilize AI in at least one function, only a third have integrated it throughout their operations. Despite 64% of businesses acknowledging AI's role in fostering innovation, only 39% reported a positive impact on their financial results. McKinsey's consultants noted that while AI technologies are becoming ubiquitous, many organizations have yet to incorporate them effectively into their workflows to achieve significant enterprise benefits.