LONDON (IT BOLTWISE) – The introduction of artificial intelligence (AI) is leading to a widening gap in productivity between large and small companies. While large companies like Amazon achieve significant efficiency gains through the use of AI, smaller companies struggle with a decline in productivity.
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Artificial intelligence (AI) has had a significant impact on the productivity of large companies in recent years, while smaller companies are struggling to keep up. Since launching OpenAI’s ChatGPT model in 2022, large companies like Amazon have seen significant productivity gains. These companies use AI to optimize their processes and reduce costs by replacing human workers with machines.
An analysis from Wells Fargo shows that productivity among S&P 500 companies has increased 5.5% since ChatGPT was introduced, while productivity at small companies listed in the Russell 2000 has fallen 12.3%. This divergence is also reflected in the performance of the two indices: the S&P 500 has risen 74% since 2022, while the Russell 2000 has only gained 39%.
Large companies like Amazon are increasingly relying on the use of robots to increase their efficiency. Amazon plans to replace more than half a million jobs with robots in the near future, which should lead to significant cost savings. According to Morgan Stanley, these efforts could save Amazon $2 billion to $4 billion by 2027.
In contrast, smaller companies are struggling to make the necessary investments in AI technologies to achieve similar productivity gains. A survey by Intuit QuickBooks found that while 68% of small businesses have integrated AI into their daily operations, only two-thirds of them report an increase in productivity.
The effects of this development are far-reaching. Large companies can further expand their market position through the use of AI, while smaller companies risk being left behind. In the long term, this could lead to a further concentration of market power among the large players, while smaller companies come under increasing pressure.
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