The AI evolution: Reality justifies the hype

As AI sparks efficiency, BofA Global Research says it will have positive financial impact on 75% of companies in the next 5 years.

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Vanessa Cook

November 2023

Key takeaways

  • The newest wave of artificial intelligence — generative AI — will likely catalyze a corporate efficiency and productivity evolution that touches every sector globally over the next 5 to 10 years. Past disruptive technologies emerged over 15 to 30 years, but AI-driven efficiencies and revenue may appear as soon as the next 3 to 5 years — a faster pace than many expect.
  • A survey of over 100 BofA Global Research equity analysts on AI's financial impact for the 3,500 companies covered globally found that analysts expect that three-quarters of covered companies will experience mild-to-strongly positive AI-driven financial impact over the next five years and 60% will implement strategies targeting operational efficiencies, followed by revenue enhancement (29%) and transformation (5%).
  • The survey also found that AI implementation strategies are expected to drive operating margin expansion across 24 of 25 industry groups over the next five years with Tech Hardware (+5%), Telecom (+5%) and Semis (+5%), most likely to experience the largest operating margin expansion. However, while the transformative nature of the newest AI wave is clear, it's impossible to foresee the long-term implications of this nascent technology.

Read our full analysis for a more in-depth look at these trends.