- Top economist warns AI productivity gains are concentrated in tech sector, with slow deployment and ROI lagging for most Fortune 500 companies.
- Regulatory hurdles, data protection, and workflow integration delay AI adoption; current market pricing may outpace actual earnings, risking a painful repricing.
- Profit margins show disparity: Magnificent Seven increased from 15% to 25% (2023-2026), while S&P 493 remained around 10%, highlighting limited broader impact.
- MIT study found only 5% of companies saw meaningful ROI from generative AI pilots; companies may slow AI spending if ROI is not quickly realized.