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“AI Talk Is Everywhere This Earnings Season — But the Profits? Not So Much.” 🚨🚨🚨

Artificial intelligence has become the buzzword of the quarter, with the vast majority of companies in the S&P 500 touting their AI ambitions during fourth-quarter earnings calls. But when it comes to showing exactly how AI is boosting profits, the numbers tell a very different story.

According to a recent analysis by Goldman Sachs, just 1% of S&P 500 companies have actually quantified AI’s impact on their earnings. That’s despite roughly 70% of companies broadly discussing AI in their calls.

In many cases, executives lump AI into broader automation or productivity initiatives, making it nearly impossible for investors to separate hype from measurable financial impact. While about 10% of companies cited productivity improvements from AI in specific use cases — particularly among software developers — very few tied those gains directly to bottom-line earnings.

In fact, only two new companies clearly quantified AI’s contribution to current earnings:

• S&P Global

• Ecolab

That limited transparency may help explain why investors have grown increasingly cautious. Over the past month, volatility in AI-related stocks has picked up as markets digest a flood of earnings reports filled with ambitious AI talk but thin financial detail.

Meanwhile, tech giants are dramatically ramping up spending. Companies like Amazon, Google, and Microsoft are set to collectively pour over $600 billion into AI investments in the coming year.

But there’s a catch.

For those investments to pay off, customers purchasing AI services must see tangible results. If businesses don’t experience real efficiency gains, revenue growth, or cost savings, they won’t continue paying premium prices. And without sustained demand, the hyperscalers’ massive AI spending spree could struggle to generate meaningful returns.

For now, Wall Street is still waiting for proof that AI isn’t just the story of the year — but a genuine driver of earnings growth.