Artificial Intelligence (AI) is playing a significant role in driving industrial gold demand, according to a new report from the World Gold Council (WGC). As AI becomes an integral part of modern technology, its rapid growth is creating a heightened need for the electronics infrastructure that powers AI systems, directly impacting the demand for gold.

The WGC report highlights gold’s essential role in manufacturing AI-enabled devices. AI systems depend heavily on advanced hardware such as processors, memory chips, and sensors—all of which incorporate gold. Devices like smartphones, autonomous vehicles, and expanding data centres are contributing to an exponential rise in demand for highly efficient electronic components. Gold’s superior conductivity allows for high-speed data transmission with minimal energy loss, while its resistance to corrosion ensures the longevity and durability of components crucial for continuous AI operations.

With AI technology advancing rapidly, the demand for sophisticated and powerful hardware is expected to increase, further driving the need for gold. Sectors like healthcare and finance are also leveraging AI to boost efficiency and innovation, amplifying gold’s demand across various industries.

Gold’s unique properties make it indispensable in the electronics sector. It is an excellent conductor, resistant to corrosion, and can be manipulated into ultra-thin wires and coatings, making it a vital component of nearly all electronic devices. Despite the rising price of gold between 2001 and 2011, which led to manufacturers seeking alternatives such as silver and copper, the electronics industry remains the largest consumer of gold.

Beyond electronics, gold is also critical in other technology applications. It is used in therapeutic devices such as implants, valued for its biocompatibility and resistance to bacterial growth. Gold nanoparticles are also pivotal in medical diagnostics and potential drug delivery systems. Additionally, gold plays a vital role in the production of satellite and spacecraft components, thanks to its ability to withstand extreme temperatures and its reflective properties that protect sensitive equipment from radiation and heat.

In the field of clean energy, gold is emerging as a promising material in hydrogen production and carbon dioxide transformation due to its effectiveness as a chemical catalyst.

The report concludes that while gold will remain a key component in the electronics industry, AI applications are expected to bolster its demand in the short term. However, as the sector continues to innovate and drive cost efficiency, the use of gold in certain applications may evolve. Gold’s unmatched properties ensure its ongoing relevance across various technological fields, maintaining its importance in the future technology landscape.