AI has a lot of fans in business. But does it actually make money?

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OpenAI CEO Sam Altman speaks during the Microsoft Build conference at the Seattle Convention Center Summit Building in Seattle, Washington on May 21, 2024.

While AI's inevitability has been a recurring refrain in much of the business media, there has been a small chorus of skeptics demanding proof of its ability to do what corporations need most: make money.The growth of AI in the last few years has demonstrated two things.

"There really has not been an industry like generative AI before, which just bleeds insane amounts of money while also really not doing enough," said Ed Zitron, a Las Vegas-based tech critic and host of the podcastLate last month, Goldman Sachs joined the group chat, becoming one of the first major investment banks to question the hype around AI, with a report entitledIn it, Jim Covello, the bank's head of global equity research, said the sheer cost of the technology hampers any...

, believes AI "has legs" in terms of profitability, but acknowledges that productivity gains "don't instantly happen." Goyal has seen a lot of "proof-of-concept" ideas and thinks the opportunity for organizations looking to take advantage of AI is in "the customer engagement space," such as making their apps more conversational and intuitive and helping to better direct phone inquiries.

 

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