Here's how artificial intelligence (AI) has taken center stage in S&P 500 companies' earnings calls for the first quarter of 2024, setting a new record for mentions and highlighting the growing importance of AI in business strategies. Learn more from John Butters, Vice President and Senior Earnings Analyst at FactSet.
Artificial intelligence (AI) has become a major topic for the market, and the first quarter of 2024 saw a significant increase in mentions of "AI" during earnings conference calls of S&P 500 companies. FactSet Document Search revealed that 199 companies mentioned "AI" between March 15 and May 23, a substantial rise from the 5-year average of 80 and the 10-year average of 50.
This marks the highest number of S&P 500 companies citing "AI" on earnings calls in the past decade, surpassing the previous record of 182 set in Q2 2023. On average, "AI" was mentioned 11 times per call, with a median of 5 mentions. Notably, Meta Platforms, NVIDIA, and Microsoft led with 95, 86, and 74 mentions respectively.
The Information Technology sector dominated, with 50 companies (91%) discussing AI. Microsoft's CEO, Satya Nadella, highlighted the company's AI-driven successes, including Microsoft Cloud's revenue growth, partnerships with OpenAI, and AI-powered features across various platforms, driving better business outcomes and increasing market share.
For further details, you can refer to the full article by John Butters on FactSet.
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