2035 AI Economy: 3 Key Insights From Sam Altman

OpenAI CEO Sam Altman has shared his latest insights on how AI is shaping the global economy. His three key observations highlight AI’s rapid scalability, the dramatic cost reductions in AI usage, and the super-exponential socioeconomic value of AI advancements.

Altman’s reflections come as OpenAI and other industry leaders push the boundaries of what AI can accomplish, with systems approaching the capabilities of artificial general intelligence (AGI). These developments, he suggests, will redefine work, productivity, and economic growth on a scale never before seen.

1. AI and scaling costs

According to Altman, the intelligence of an AI model is directly tied to the logarithm of the resources used to train and run it — primarily computing power and data. He notes that organizations can continue investing in AI development at nearly any scale, with consistent and predictable improvements. This scalability has already been demonstrated through OpenAI’s own models, which have seen exponential growth in capability over time.

2. Costs are plummeting

The cost of using AI at a given level of intelligence is dropping at an extraordinary rate — approximately tenfold every 12 months. Altman points to the transition from GPT-4 to GPT-4o, where the price per token decreased by 150 times. This pace of cost reduction vastly outstrips Moore’s Law, which historically saw computing power double every 18 months. Lower AI costs fuel greater adoption, enabling more businesses and individuals to integrate AI into their workflows.

3. eAI: The exponential value of AI advancements

Beyond cost and scaling, Altman argues that even incremental improvements in AI lead to super-exponential increases in socioeconomic value. This trend suggests that investment in AI will continue accelerating, with no near-term slowdown in sight. As AI capabilities expand, healthcare and software engineering industries will see profound transformations.

AI as a transformative force?

Altman envisions AI agents as “virtual co-workers” capable of assisting in knowledge work across various fields. While AI will not replace human creativity or big-picture thinking, it will provide a powerful tool for increasing productivity. Over time, AI is expected to become as ubiquitous and indispensable as the transistor, powering innovation across the global economy.

Despite these promising advancements, Altman acknowledges the importance of responsible AI governance. Ensuring that AI benefits are widely distributed will require careful policy considerations and proactive measures to prevent economic disparity.

Learn about AI policy and governance in detail to understand how to use the technology responsibly and how it can impact your business.
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