AI Could Have Major Impact on Industry Profitability

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Industry,Computing,Energy

AI could fuel margin expansion in 23 out of 25 industries, with the greatest impact on software and semiconductor companies in the next five years

Investors have poured billions into AI-related companies, but adoption is moving slowly across American firms. According to the Census Bureau, just 5% of American businesses have used AI to produce goods and services over the last two weeks, highlighting that market enthusiasm is not yet matching the real economy. Despite this slow progress, AI has the potential to boost productivity across a wide scope of industries, from energy to transportation.

Represents the relative change over five years, where 5% indicates an operating margin increase from 20% to 21%. Meanwhile, the energy and utilities industries could see margin expansion from implementing AI across a variety of use cases, including exploration, pipeline monitoring, and environmental monitoring. Today, major players like Shell, GE Vernova, and Schneider Electric are launching AI pilot programs to enhance operations throughout the energy value chain.

 

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