There's a Small Problem With the AI Industry: It's Making Absolutely No Money

Metadata

• Author: Sharon Adarlo
• Full Title: There’s a Small Problem With the AI Industry: It’s Making Absolutely No Money
• URL: https://futurism.com/the-byte/ai-industry-money

Highlights

• But there’s a huge issue: Goldman Sachs analysts have concluded, according to The Economist, that AI just isn’t making any serious money yet. (View Highlight)
• Tellingly, Goldman found that companies that hoped to profit from using AI to boost productivity — ranging from H&R Block to Walmart — have seen their shares vastly underperform the broader stock market since the tail end of 2022. (View Highlight)
• AI’s market penetration is also surprisingly shallow. Only five percent of businesses are using AI, according to a US Census Bureau report flagged by The Economist, and that number is only projected to rise to about 6.6 percent by this autumn. (View Highlight)
• Adoption rates may be stymied by concerns over hallucinations, when AI just makes stuff up, and security and privacy issues because these models are essentially black boxes that may spit out important trade secrets. (View Highlight)
• In other words, there’s a huge amount of hype — but so far, the only companies making much actual revenue off AI are the ones selling the hardware it needs, like Nvidia. (View Highlight)