Trends to watch among companies using AI
Things are changing quickly in AI. Let’s take a look at some of the trends investors should keep on eye on.
Layoffs: There’s a lot of fear in the tech sector about layoffs, and we’re already starting to see some evidence that AI is causing layoffs. Block, the fintech company that owns Square and Cash App, said it was laying off 40% of its staff as it pivots to AI. Atlassian just said it would cut 10% of its workforce for the same reason, and Meta Platforms is cutting 20% of its employees as it plows money into AI.
Agentic AI adoption: Companies are moving beyond generative AI to agentic AI, meaning AI that handles tasks without direct human input. AI agents can help handle customer service requests, process insurance claims, and verify information. Expect companies to invest in agentic AI and make it a focus of their strategy.
Focus on ROI: By now, AI is past the stage of being a curiosity. Businesses have gotten familiar with it, and adoption is moving full-speed ahead. However, it’s unclear if AI is delivering a meaningful return on investment. Look for management to begin focusing more attention on ROI and showing those results to investors.
