What has become of the artificial intelligence revolution?

When moving to San Francisco, one cannot help but notice the excitement around artificial intelligence (AI). Advertisements highlight how AI will revolutionize workspaces, while people in bars discuss when the world will achieve AGI or when machines will surpass human intelligence. The big tech companies like Alphabet, Amazon, Apple, Meta, and Microsoft, all with headquarters or offices nearby, are investing heavily in AI. This year alone, they are set to spend around $400 billion on AI-related hardware, research, and development.

In the tech capital of the world, it is widely believed that AI will radically transform the global economy. However, in order for AI to reach its full potential, businesses worldwide must adopt AI technologies from major tech companies, adapt it to their specific needs, and increase productivity as a result. Investors have increased the market value of the big tech firms by $2 trillion in the past year, suggesting an additional $300 billion to $400 billion in annual revenues, equivalent to another Apple’s annual sales. Yet, currently, these tech giants are far from achieving such results. Even optimistic analysts predict that Microsoft will only make around $10 billion from generative AI-related sales this year.

Outside of America’s west coast, there is little evidence that AI is making a significant impact. The adoption and integration of AI technologies by businesses worldwide will be crucial in unlocking its full potential.