Welcome to Goldman Sachs Exchanges. I'm Allison Nathan and I'm here with George Lee, who is the co-head of the Goldman Sachs Global Institute.

Together we're co-hosting a series of episodes exploring the rise of AI and everything it could mean for companies, investors, and economies.

George, good to see you again. Great to see you. I really enjoyed our first discussion and super excited about this one today.

So today we are going to discuss how AI can fit into enterprises. We're always talking about

the use case. And perhaps we should say it's a big question about how enterprises can fit

themselves around this evolving and exciting technology. So set the stage for us, when you think about what companies are doing today with AI,

how would you explain the usage and how has that evolved over the last year or two?

Yeah, great question.

Look, I think we're in the early days, and that's consistent with the state of development of the

technology itself, which is quite novel, as you and I have discussed before. That having been said,

there is definitely a value gap opening up between the trajectory of the technology and the amount

of enterprise adoption of that technology. And I think there are really three reasons for that. First is always

was it thus. And by that I mean that the diffusion of new technology in businesses is always a little

bit of a slow, deliberate process. Second, the pace of progress of the technology itself is an

obstacle to adoption. Any technology that is moving as

fast as this one makes it hard for CIOs, CDOs, etc., to figure out what technologies to deploy

when, where, and how. And so almost it's funny, as much as I admire the trajectory of improvement,

for the sake of adoption, I almost wish

it would slow a little bit. Third, it's a general purpose technology. That's part of the

genius, but that's part of the challenge for an enterprise. So its use cases are bounded only by

human creativity and imagination, but it takes human creativity and imagination to determine

how you want to use this

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