It doesn’t take an AI programmer pulling in $1 million (old bonus) a year to see the huge impact this rapidly spreading technology will have on society.
And one of those results will be in a specific category: Cars full of money for corporate America.
But don’t just take my word for it.
Check out the team’s new ranking at Goldman Sachs.
Goldman’s economists estimate that artificial AI could raise US productivity by about 1.5 percent per year over the next 10 years. Based on the historical relationship between productivity growth and corporate profits, this jolt could lift S&P 500 profits by four percent over that decade.
Looking at it another way, a company’s gross profit is equal to the amount of its earnings and the growth of its capital. And imagine what would happen: A very fast path for the S&P 500.
Goldman’s Ben Snider said: “Artificial intelligence represents the biggest potential long-term support for profit margins.
Big, established companies aren’t wasting time embracing the potential of AI.
Expedia Group CEO Peter Kern tells me that the company has partnered with OpenAI developer ChatGPT to improve the travel booking process – among other benefits.
“We’re basically letting people use ChatGPT to ask, where should I stay near the Empire State Building or near the Eiffel Tower? What are the best hotels there? And then as they get ideas, we take those ideas into our travel planning. And you can go in and search and compare and do things. all of that. But there’s a lot of potential for this. And we’re looking at exciting ways to use ChatGPT to help,” Kern said on Yahoo! Finance Live.
Added Kern, “We’re thinking [AI is] It is important to improve the skills of our customers and the skills of our employees. Our supporters will be able to use it one day. “
Want to know why AI stocks have soared this year? This is especially sweet for a reason – AI technology from vendors of all sizes will become increasingly important as companies look to increase profitability and drive more revenue and cash flow.
I’m not saying that the move to advanced AI teams like C3.ai is legal by any means, but there is a reason behind it all.
Now bring on the earning season of 2033.
Brian Sozzi and Executive Editor of Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Advice on banking problems? Email brian.sozzi@yahoofinance.com
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