A recent analysis by the Financial Times has highlighted a significant challenge facing major corporations regarding their adoption of artificial intelligence (AI). The study found that many of the largest companies listed on the S&P 500 struggle to articulate how AI is benefiting their operations. This uncertainty raises critical questions about the technology’s actual value in driving corporate success.
The investigation examined hundreds of corporate filings and executive transcripts, revealing that many companies are adopting AI not out of a strategic necessity, but rather due to a pervasive fear of being left behind. According to Haritha Khandabattu, a senior director analyst at Gartner, “For some leaders, the question isn’t ‘what problem am I solving?’ but ‘what if my competitor solves it first?’” This sentiment reflects a broader trend where the decision to implement AI is often driven by the desire to keep pace with industry peers rather than a clear understanding of its potential benefits.
The implications of this trend are concerning. A study from MIT found that an astounding 95 percent of companies that integrated AI reported no significant growth in revenue. This lack of measurable success has led to skepticism about the transformative power of AI, despite the substantial investments made by these firms.
Executives have shown a tendency to discuss AI in overly optimistic terms. The Financial Times identified that 374 of the S&P 500 companies mentioned AI during earnings calls in the previous year, with 87 percent portraying the technology in a positive light. Promises of increased productivity and optimized workflows were common themes, yet specific details on how these outcomes would be achieved were often vague.
Notably, some companies have showcased AI applications that do not directly relate to their core business. For instance, Coca-Cola executives expressed enthusiasm about using AI to create a television advertisement, a task that does not align with their primary objective of manufacturing beverages.
In contrast, firms that have reported tangible benefits from AI are often those profiting from the broader hype surrounding the technology. Companies in the energy sector, supplying power to AI data centers, and mining firms benefiting from sustained metal prices due to data center construction have capitalized on this trend.
As businesses navigate the AI landscape, concerns about cybersecurity have become increasingly prominent. More than half of the S&P 500 companies cited cybersecurity as a potential risk in 2024. For example, the dating application Match warned that AI could lead to “cybersecurity incidents that implicate the personal data of end users of AI-enhanced services.”
The legal implications surrounding AI also pose a significant concern. Anthropic, an AI company, is facing a lawsuit requiring it to pay $1.5 billion to authors for allegedly training its AI using their books without permission. This case underscores the potential for substantial legal liabilities as businesses increasingly integrate AI technologies. Pepsico, a multinational food conglomerate, acknowledged that its use of AI could result in “increased claims of infringement or other claims, including those based on unauthorized use of third-party technology or content.”
Moreover, the uncertainty surrounding AI’s effectiveness is a source of anxiety for many corporations. Ray Eitel-Porter, an AI governance expert, noted that companies often view AI as a risk because they lack systems and processes that they can fully trust. Even industry leaders like Meta, whose market capitalization has surged by over 600 percent since the onset of the AI boom, have expressed caution. In a government filing, Meta stated, “There can be no assurance that the usage of AI will enhance our products or services or be beneficial to our business, including our efficiency or profitability.”
The ongoing discourse surrounding AI adoption among major businesses reveals a complicated landscape marked by both ambition and uncertainty. As companies grapple with the implications of this technology, it remains to be seen how they will navigate the challenges and realize the potential advantages that AI may offer.