CEOs extol benefits of AI on earnings calls but not in official filings

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AI has yet to make a material impact for the vast majority of companies. Read more.

Activate your Online Access NowBut less than one in six — 16 per cent — mentioned it in their corresponding regulatory filings, highlighting how AI has yet to make a material impact for the vast majority of companies.

“The joke out there was that all you had to do last quarter was say ‘AI’ and your stock would pop immediately,” said Bryant VanCronkhite, a senior portfolio manager at Allspring Global Investments Holdings LLC, the US$550-billion asset manager. “Some companies are saying they’re doing AI when they’re really just trying to figure out the basics of automation. The pretenders will be shown up for that at some point.”

The motivation for executives to join the AI conversation is clear. The seven largest AI-linked tech groups have been responsible for the majority of the stock market’s rise in the United States this year. Chipmaker Nvidia Corp. has led the way with a gain of more than 200 per cent as of Aug. 22. At the same time, investors are on the lookout for business models that could be disrupted by the new technology. Chegg Inc. sparked a selloff across the education industry in May after the maker of online study guides warned that the growth of AI chatbots such as ChatGPT was hurting its sales.There was an error, please provide a valid email address.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

 

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CEOs extol benefits of AI on earnings calls but not in official filingsAI has yet to make a material impact for the vast majority of companies. Read more.
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