Historical data shows technological advancements tend to increase market concentration among leading corporations, per Goldman Sachs research.
A Goldman Sachs analysis of nearly a century of corporate data suggests artificial intelligence could further entrench the market dominance of America’s largest companies. The study highlights that periods of rapid technological change have historically led to higher corporate concentration, driven by scale and network effects favoring established firms.
Corporate concentration in the US has risen steadily since the 1930s, accelerating during past technology shocks. The report notes that successful investment in intangible capital, such as AI, typically reinforces the advantages of leading firms rather than disrupting them.
The findings contrast with concerns that AI could trigger widespread disintermediation and market downturns. Earlier this year, a report by independent research firm Citrini sparked volatility by warning of potential white-collar layoffs and stock market declines due to AI-driven competition.