Cathie Wood, chief executive of ARK Investment Management LLC, said artificial intelligence is already contributing to higher labor productivity and has the potential to produce significantly larger improvements over the coming years.
Wood pointed to official productivity data, noting that non-farm productivity has increased by 2.8% on a year-over-year basis. She said the introduction and adoption of new AI tools should see that pace rise, potentially reaching as much as 6% annually as these technologies mature and diffuse through the economy.
Speaking on Bloomberg Television, Wood offered a strong endorsement of current large language models, saying: "The productivity we are enjoying from these large language models is astonishing." She added that even "former skeptics" within her organization have been "blown away by what they can do," reflecting a rapid shift in internal assessments of the technology's capabilities.
Wood cited revenue growth among what she described as frontier AI model providers as evidence of commercial traction. She noted that Anthropic's annualized revenue has reached $19 billion, and that OpenAI's revenue has expanded from $20 billion to $25 billion. Those figures were used to illustrate how the market for advanced AI models is moving from minimal revenue to large-scale commercial activity.
Looking ahead, Wood projected very large revenue generation from AI over the medium term. "Were going to see $10 to $12 trillion in revenue generation within the next five to ten years from almost nothing now," she said, adding that such an expansion would be a "needle mover in terms of GDP."
Her remarks coincided with public projections from Nvidia's chief executive, Jensen Huang, who forecast at least $1 trillion in sales through 2027. Wood's comments framed both the productivity gains and the revenue trajectories as parts of the same broader story about AI's economic impact.
Summary
Cathie Wood said AI is already lifting labor productivity, with non-farm productivity up 2.8% year-over-year and potential to rise to about 6% annually as new AI tools spread. She highlighted rapid revenue growth at leading AI model companies and forecast $10 to $12 trillion in revenue over five to ten years, a development she said would materially affect GDP. Nvidia's CEO separately projected at least $1 trillion in sales through 2027.
Key points
- Current non-farm productivity growth stands at 2.8% year-over-year, with potential to reach up to 6% annually as AI tools are adopted - impacts labor productivity and GDP.
- Frontier AI model providers have seen rapid revenue expansion, with Anthropic annualizing $19 billion and OpenAI growing from $20 billion to $25 billion - impacts AI sector and technology markets.
- Cathie Wood forecasts $10 to $12 trillion in AI-driven revenue within five to ten years; Nvidia's CEO projects at least $1 trillion in sales through 2027 - impacts broader market revenues and semiconductor demand.
Risks and uncertainties
- Future productivity gains are projections and not guaranteed; the estimate that productivity could climb to 6% annually depends on the pace and scale of AI tool adoption - affects labor markets and GDP outcomes.
- Revenue forecasts for AI firms and the broader $10 to $12 trillion projection are forward-looking estimates and may not materialize as expected - impacts investors and companies in the AI and technology sectors.
- Corporate sales projections, such as Nvidia's forecast of at least $1 trillion through 2027, are subject to market conditions and execution risk - affects semiconductor and hardware markets.