Hype around artificial intelligence (AI) by company bosses is yet to be backed up through firms’ regulatory filings, according to an analysis by Alphasense.
Though some 40% of S&P 500-listed companies mentioned their use of AI during earnings calls in the last financial quarter, just 16% delved into the emerging technology in regulatory filings.
Given the discrepancy, the full impact AI will have on companies’ operations seems yet to completely emerge.
Allspring Global Investments portfolio managers pointed out that many companies had already been boasting about their use of AI, when realistically most had only explored the basics.
“The pretenders will be shown up for that at some point,” Asspring senior portfolio manager Bryant VanCronkhite said.
Chipmaker NVIDIA Corporation (NASDAQ:NVDA) and education company Chegg have each respectively proven the extreme effects mentions of AI can have on a company’s share price.
NVIDIA has climbed some 228% so far this year, thanks in particular to strong first-quarter earnings which blatantly showed off the growing demand for artificial intelligence tech.
On the other side, education provider Chegg has fallen by almost 63% since the turn of the year, with April’s announcement that the growing use of chatbots had begun weighing into new customer numbers prompting investors to flee.