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Originally Posted On: https://www.empower.com/the-currency/money/how-artificial-intelligence-making-its-way-top-corporate-ladder
How artificial intelligence is making its way to the top of the corporate ladder
Key takeaways
- The top 5 tech firms are investing upwards of $400 billion in AI this year
- 96% of executives feel an urgency to incorporate AI into their business
- Today, just 5.4% of firms use AI
- Yet, 22% of Americans interact with AI multiple times a day
- The AI market is poised for annual growth of 42%
By now, the promise is familiar.
Artificial intelligence (AI) has promised to revolutionize the workplace: Software companies are investing gangbusters in the development of the technology and tools — in 2024 alone the big 5 tech firms have budgeted around $400 billion for mostly AI-related hardware, as well as research and development.1 According to some estimates, the generative AI market is positioned for a 42% annual growth rate to reach $1.3 trillion in the next decade — with specialized AI assistant software projected to drive $89 billion of that.2
Ladder matters
Corporations have largely embraced AI and a future-looking philosophy, but moving fast is key.
In fact, the vast majority of executives (96%)3 say they feel an urgency to incorporate AI into their business operations — and earnings chatter seems to support that sentiment. In earnings calls from March 15 through May 23, 2024, 199 companies in the S&P 500 mentioned AI an average of 11 times — the highest in over the past 10 years — and for 12 companies it came up more than 50 times.4
Stuck on a rung
How much of AI talk will lead to execution? A look at adoption data tells a mixed story.
A survey by the Pew Research Center reveals nearly one quarter of Americans (22%)5 say they interact with AI several times a day, and 27% say they do so once a day or several times a week. And consumers seemingly are open to more: Empower research shows 21% would use AI to recommend money moves to plan for retirement, help pay bills on time (25%), and make a budget by examining personal financial accounts (23%).
Yet workplace usage looks a bit different than at home. According to the U.S. Census Bureau, while the number of organizations using AI is rising, it’s still reasonably low: Only 5.4% of firms were using AI as of February 2024, up from about 3.7% in September 2023.6 Despite the widespread expressions of enthusiasm for AI’s virtually limitless possibilities and the urgency felt by executives, businesses are slow to integrate AI products and services.
Firm-weighted AI use by state
A closer look shows that AI usage is highest among firms in Colorado (7.4%), Washington D.C. (7.2%), California (6.7%), and Florida (6.6%), with Delaware, Nevada, and Utah each not far behind (6.5%). Companies in Mississippi (1.7%), Maine (2.3%), and West Virginia (2.3%) are slowest to take steps toward AI so far.
Still several steps away
Though transformation of the workplace may be eventual, there’s still a ways to go. Pew research shows that 49% of people believe AI is more of a help than a hindrance in finding products and services they’re interested in online.7 That said, the number of Americans open to using AI today doesn’t necessarily signal a continued upward trajectory.
For the corporate world, it’s a bit more complicated. While there’s a flurry of AI assistants in development, there’s ample opportunity for the technology to be better tailored to the specific needs of industries, roles, and tasks.
AI at work
According to Empower research, 1 in 4 people say work satisfaction comes from taking on challenging projects and recognition for the job performed (34%) — and those who embrace AI may have more opportunities to stand out. In fact, data shows job seekers with generative AI skills have a salary boost of 47% compared to those without, making an average of $174,727.8
Still, adoption will require adaptivity, and some 31% of people don’t want their job description to change, so the ability to partner — a cornerstone of success of real, live humans in the workplace — will go a long way.
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1“What happened to the artificial-intelligence revolution?” The Economist, July 2, 2024.
2“The generative AI economy: Worth up to $7.9T,” qualcomm.com, November 30, 2023.
3“AI skills can help you land a job or promotion faster—especially for Gen Z, says new research,” CNBC Make it, June 18, 2024.
4“Highest number of S&P 500 companies citing ‘AI’ on earnings calls over past 10 years,” Factset.com, May 24, 2024.
5“Many Americans think generative AI programs should credit the sources they rely on,” Pew Research Center, March 26, 2024.
6“Tracking Firm Use of AI in Real Time: A Snapshot from the Business Trends and Outlook Survey,” U.S. Census Bureau, CES-WP-24-16.pdf (census.gov), March 2024.
7“Growing public concern about the role of artificial intelligence in daily life,” Pew Research Center, August 28, 2023.
8“Generative AI skills bring nearly 50% salary bump: Indeed,” CIO Dive, February 21, 2024.
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