Corporate america's AI adoption is steady, not explosive

A analysis of corporate financial filings reveals that less than a quarter of S&P 500 companies have deeply integrated AI into their business processes or use it in the production of goods and delivery of services as of the end of last year. The technology sector leads in AI integration, accounting for two-thirds of extensive AI use, while fewer than two dozen non-technology firms have achieved full AI deployment. Full deployment is defined as AI being a core component of a firm’s strategy and financial performance, deeply embedded across business functions and operations. Notable non-technology firms with full AI deployment include Moderna, Mastercard, Bank of New York Mellon, and GE Healthcare. Despite the technology sector’s heavy weighting in stock market indices, non-technology firms make up 90% of the U.S. economy, where significant value remains untapped. AI adoption is driven by ongoing technological improvements, with large language models (LLMs) showing progress in automating text-related tasks. Two years ago, LLMs could complete a 10- to 12-slide quarterly customer review presentation for a nine-month SaaS integration project with a 50% success rate, rising to 65% a year later. If trends continue, LLMs could achieve success rates of 80% to 95% by 2029. Over half of the S&P 500 have AI pilot projects underway, with varying degrees of success. Lessons from these pilots are expected to drive productivity and efficiency gains, leading to higher revenue and profits, pushing companies beyond basic AI use such as ChatGPT for writing job descriptions.