Companies emphasize AI in Q2 analyst calls.
Companies emphasize AI in Q2 analyst calls.
Rise of Artificial Intelligence in Corporate World
/cloudfront-us-east-2.images.arcpublishing.com/reuters/BKLABEDUGBM7PKAZPFB2ARBXKQ.jpg)
July 31 (ANBLE) – It’s a high bar, but companies reporting second-quarter earnings in recent weeks have talked up artificial intelligence even more than in the previous quarter.
Companies today are abuzz with discussions about artificial intelligence (AI), and the recent earnings reports highlight this trend. The S&P 500 companies, which made headlines earlier this year due to their emphasis on AI during quarterly conference calls, have surpassed themselves in their latest reports. Intel, for instance, mentioned AI a staggering 58 times on its call, compared to just 15 times in its previous call in April.
Intel, however, faced some setbacks in the sale of components for AI computing, with a 15% decline in its data center and AI business in the second quarter. This prompted the company to redouble its efforts to catch up with rivals like Nvidia, who have flourished in the AI market. Despite this, optimism regarding a recovery in weak demand for personal computers led to a 6.6% surge in Intel’s shares following its report.
The surge in AI-related discussions is not limited to Intel alone. During Alphabet’s analyst call, participants mentioned AI 62 times, reflecting a significant increase from the 52 mentions three months ago. Microsoft’s call also witnessed a spike in AI discussions, with the term being mentioned 58 times, up from 35 times in the previous call. This surge in interest and enthusiasm for AI demonstrates Wall Street’s optimism in leveraging generative AI and related technologies to enhance efficiency and introduce new services across various industries. As a result, the Nasdaq has surged 37% this year, with the S&P 500 gaining 20%.
According to an analysis by ANBLE, over a third of S&P 500 companies mentioned AI in their second-quarter conference calls, compared to a quarter of companies during the first quarter. Transcripts reveal that the terms “AI” or “artificial intelligence” were uttered 827 times on 76 calls, indicating an average of 3.7 mentions per call. This is more than double the 1.8 mentions per call reported during the same period last quarter.
- Tesla to reduce prices of certain Model 3 and Model Y vehicles in H...
- Oil inventory drops set stage for higher prices
- SEC requested Coinbase to exclusively trade bitcoin prior to suing ...
While technology giants dominate the AI discussions, it is interesting to note that businesses not typically considered “tech companies” are also actively engaged in conversations around AI. Moody’s Corp and S&P Global Inc, both renowned names in their respective fields, witnessed a significant increase in AI mentions on their conference calls, showcasing the integration of this technology into their risk assessment software and other areas. For Moody’s, AI was mentioned only three times in the previous quarter, but that number rose to 58 times recently. Similarly, S&P Global saw AI mentions jump from 10 to 58 on its recent calls.
Other companies that emphasized the implementation of AI in their recent conference calls include insurer Travelers Companies, marketing firm Omnicom Group, consumer credit score company Equifax, and data center investor Digital Realty Trust.
As companies continue to explore and capitalize on the potential of AI, it is clear that this technology has become an essential tool across industries. The increasing mention of AI in conference calls signifies the growing recognition of its transformative power. From underwriting and claims handling to risk assessment and marketing, AI is revolutionizing operations and paving the way for enhanced efficiency and innovation.
So, whether it’s building better chipsets or leveraging generative AI algorithms, companies are embracing AI to drive growth and achieve strategic objectives in today’s digital world.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/X3RYHFPFF5M3RIQSSLWPAJBOSQ.jpg)
