Bryant VanCronkhite, a senior portfolio manager at Allspring Global Investments, has noted that some companies claim to be using AI when they are actually still in the early stages of exploring automation. This discrepancy between the talk and action around AI may eventually expose these “pretenders.”

Executives are motivated to join the AI conversation due to the market success of tech giants like Nvidia, which has seen its stock rise by over 200% this year. Investors are also concerned about Potential disruptions caused by AI, as seen when Chegg’s warning about AI chatbots hurting sales led to a sell-off in the education industry.

Even industries not known for technological innovation, such as fashion and restaurants, are expressing interest in AI. However, most of these companies did not mention AI in their recent Regulatory Filings. While progress is being made in AI experiments, the financial impact has yet to materialize for many.

It is important for investors to separate hype from real potential when it comes to AI. While the long-term impact of AI is expected to be significant, it will take time for its full potential to emerge. As Rob Arnott, chair of asset manager Research Affiliates, stated, “Do I believe the hype about AI? Yes, I do. I think it’s absolutely going to rock our world. Do I believe it will happen overnight? Heavens no.”

Sources:
– Alphasense data
– Allspring Global Investments
– Nvidia
– Research Affiliates

The post The Talk of AI May Be Just Talk for Many Companies appeared first on TS2 SPACE.