AsianFin -- Artificial intelligence could boost the S&P 500’s market capitalization by as much as $16 trillion, according to Morgan Stanley strategists.

In a note to clients over the weekend, the bank said productivity gains and cost reductions from widespread AI adoption could add between $13 trillion and $16 trillion to the index’s value. At the high end, that would translate into a 29% increase in market cap.

The forecast assumes AI capabilities continue to “improve rapidly” and that companies adopt the technology at scale, though Morgan Stanley did not provide a specific timeline.