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The use of Artificial intelligence (AI) has nearly doubled in the last couple of years. Most publicly listed companies have some other exposure to AI-related tools and integration at present. However, according to research firm Radio Free Mobile’s founder, technology companies need to start generating a good amount of revenue from these AI tools in 2024.
Tech companies should start generating revenue from AI in 2024
Radio Free Mobile founder Richard Windsor in an interview with Yahoo Finance said that several companies have exposure to AI. However, this exposure isn’t still cashed in. He went on to highlight that Google, Meta, and China’s Baidu don’t have generative AI as a significant revenue generator today.
Windsor warned that 2024 should be the year when generative AI should start creating traction, traffic, and revenue for big technology companies.
Tech stocks currently riding the AI hype
Investor attention, especially in stock markets right now has been towards technological companies riding the AI hype. Tech stocks on NASDAQ surged 43% in 2023, according to CNBC. However, Windsor believes that tech firms are likely to fail in delivering and performing on this hype. This could lead to the stocks deflating in the coming future.
Describing the situation further, Windsor said that it is as if technology stocks are currently in an “AI Bubble”. If the growth does not transcend into good revenue numbers, the bubble will burst. This can result in a fall in tech stocks, companies falling prey to false valuations, missed revenue targets, and a bleak company outlook.
Superintelligence is still far away, says Richard Windsor
The global artificial intelligence market size is anticipated to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030. By 2030, it is anticipated to reach $1,811.8 billion. With such massive growth, investor attention has always caught an eye on the fact that tech companies have extremely profitable services that they can provide based on their exposure to AI.
However, Windsor in his interview said that people mostly perceive AI intelligence as supercomputers. But, he believes that the reality is not even close. He adds to say that “we are no closer to super intelligence than we were ten years ago.”
With the lack of actual growth and integration of artificial intelligence, tech companies are likely to face price competition, revenue decline, and massive stagnation in the sector.
Despite all this, the global forecast of AI growth remains resilient and impactful. According to Forbes, China is expected to benefit the most from AI, with its GDP expected to climb by 26% by 2030, and North America to benefit by 14.5%. Together, these gains will equal $10.7 trillion, or over 70% of the global economic impact.
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