Trend Early AI adoption with limited profit impact so far

Summary

The report credits AI with the potential to spur innovation, lower costs and enable new business models, while saying it is still too early to tell how this will play out in practice. Many companies and governments have now taken first steps in applying AI, and firms see benefits in cost savings and revenue growth. Even so, the financial effect on operating profit has so far been modest. In the short term there are many obstacles to integrating AI into operations, and high investment costs do not always justify relatively modest expectations of profit growth. Over a somewhat longer horizon, AI could deliver productivity and revenue gains through automating knowledge work, making functions such as customer operations more efficient and supporting research and innovation. The report regards these expected benefits and positive experiences as a major force behind the rapid spread of AI.