Last week, a top Goldman Sachs analyst said that the world is entering a new ‘super cycle’ of economic expansion that will be driven, in part, by AI and decarbonization, according to CNBC.

A ‘super cycle’ is described by CNBC as ‘a lengthy period of economic expansion, often accompanied by growing GDP, strong demand for goods leading to higher prices and higher levels of employment.”

According to Peter Oppenheimer, Head of Macro Research in Europe at Goldman Sachs, the most recent significant super cycle occurred in the early 80s. This was a period characterized by rising interest rates and inflation “before a decadeslong period of falling capital costs, inflation and rates, as well as economic policies such as deregulation and privatization.” During this time, geo-political tensions eased, and globalization expanded.

Going forward, some of these variables will look different. “We’re not likely to see interest rates trending down as aggressively over the next decade or so, we’re seeing some pushback to globalization and, of course, we’re seeing increased geopolitical tensions as well,” said Oppenheimer.

While the use of AI is still in the early stages, Oppenheimer predicts we will see improvements in productivity which could be positive for growth. Meanwhile, as AI is increasingly used to develop new products and services, this could result in a “positive effect” for stocks.

Through our conversations with members of the 500,000+ strong HMG community, we’re also seeing immense opportunities for leveraging AI to create new business services and fresh Go-to-Market models, to deliver real-time intelligence regarding customer behavior along with opportunities to streamline organizational workflows.

Companies that act quickly and effectively on these opportunities position themselves to be market movers. CIOs and business technology leaders who are able to peer around the corners and communicate opportunities for leveraging AI with the senior leadership team can further strengthen their roles in the enterprise.

What are your thoughts? Do you see an opportunity for the global economy to enter its next super cycle, with AI leading the way? Please share your insights with us in the comments field below.

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