Most Businesses Have Yet To Harness AI

Key Takeaways

• Most U.S. businesses aren’t using artificial intelligence (AI) to produce goods and services, despite investors’ interest in the technology.
• Businesses in information technology and professional, scientific, and technical services are the largest adopters.
• Despite the small portion of businesses that have adopted the technology, interest is at a historic high and more businesses say they plan to implement AI in the next six months.

Despite all of the talk about artificial intelligence (AI) and large language models, most businesses have yet to implement the technology in their workdays. 

About 4.6% of U.S. businesses use AI to produce goods and services, according to data this week from the U.S. Census Bureau. The percentage of companies that implemented AI was similar to the overall total when comparing companies by employee count.

The interest in AI has been credited with supercharging technology company stocks this year, leading broader markets higher. Nvidia Corp. (NVDA) stock has soared 233% so far this year on its merits as an AI chipmaker. Microsoft Corp. (MSFT), which is deeply embedded with ChatGPT creator OpenAI, has risen 56% year-to-date.

According to the Census Bureau survey, 14.2% of businesses in information technology are using AI. A significant share (11.2%) of businesses in the professional, scientific, and technical services sector said they were AI adopters. 

In contrast, less than 2% of hospitality businesses such as bars, restaurants, and hotels reported using the technology.

Fewer Standard & Poor’s 500 companies mentioned AI on their earnings calls in the third quarter as well, according to FactSet. More than 150 companies talked about the technology on their earnings calls about the latest quarter, 16% fewer than in the quarter prior.

However, the lack of usage and mentions during the recent earnings season doesn’t mean the hype will die down any time soon. 

The number of public companies talking about AI during earnings season is still far above the five- and 10-year average for discussing it, according to FactSet. And a larger percentage of companies (7.3%) across the country said they were planning to use AI in the next six months, according to the Census Bureau.

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