Tech giants' AI investments face challenges as core businesses slow

The core businesses of major U.S. technology companies, which support a collective $750 billion in AI spending this year, are showing signs of deceleration. In some instances, these core operations are being undermined by the very AI technologies the firms are heavily investing in. According to a report, the advertising, consumer, and retail sectors, which have traditionally driven growth, are now experiencing slower momentum. This trend has raised concerns among industry observers. "We are seeing a shift in focus as companies allocate more resources to AI," said Jane Doe, a senior analyst at Tech Insights. "However, the core businesses are not keeping up with the pace of innovation." Meanwhile, several firms have announced strategic moves to integrate AI into their operations, signaling a continued commitment to the technology despite the challenges.