Written by 8:06 pm AI, Discussions, Uncategorized

### Unlocking the Untapped Potential: Companies Lagging in AI Adoption

Most U.S. businesses are not using artificial intelligence to produce goods and services despite in…

Despite all the discussion surrounding large language models and artificial intelligence (AI), the majority of businesses have not yet integrated this technology into their daily operations.

As per recent statistics from the U.S. Census Bureau, only about 4.6% of American companies utilize AI in the development of their goods and services. Interestingly, when categorized by the number of employees, the adoption rate of AI remains consistent across different company sizes.

The surge in tech company stocks this season, propelling the broader markets upwards, has been linked to the growing interest in AI. Nvidia Corp. (NVDA) has seen a remarkable 233% increase in its stock value this year, largely attributed to its prowess as an AI chipmaker. Similarly, Microsoft Corp. (MSFT), closely affiliated with OpenAI, the creator of ChatGPT, has witnessed a 56% surge in its stock performance year-to-date.

A Census Bureau survey reveals that 14.2% of companies within the information technology sector have implemented AI in their operations. Notably, businesses in the professional, scientific, and technical services sector have also embraced AI, with a substantial 11.2% claiming adoption.

In contrast, the utilization of AI remains notably low in the hospitality sector, with less than 2% of companies in areas such as bars, restaurants, and accommodations incorporating these technologies.

Despite the hype surrounding AI, recent data from FactSet indicates a slight decline in the number of Standard & Poor’s 500 companies referencing AI in their upcoming earnings calls. In the most recent quarter, over 150 companies discussed AI, marking a 16% decrease compared to the previous quarter.

Nevertheless, the reduced mentions of AI during the current earnings season do not necessarily signify a waning interest in the technology.

FactSet data also highlights that the number of publicly traded companies discussing Artificial Intelligence during earnings calls remains significantly higher than the average over the past five and ten years. Furthermore, the Census Bureau reports that a notable 7.3% of businesses nationwide have expressed intentions to integrate AI into their operations within the next six months.

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Last modified: February 7, 2024
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