Firms Exposed to AI Job Streamlining Are Already Beating the Market, Study Says
Aug 02, 2023 - bloomberg.com
The stock market is already sorting winners from losers as artificial intelligence (AI) permeates the economy, with companies most suitable for AI streamlining outperforming the market, according to a study by researchers from the University of California Los Angeles and the University of Southern California. The study, titled “Generative AI and Firm Values,” is an attempt to quantify the impact of the release of the ChatGPT program.
The research suggests that stocks are already pricing in a job-replacement premium due to AI. This goes beyond tech giants like Nvidia Corp. and Microsoft Corp., indicating that AI's influence is widespread across various sectors of the economy.
Key takeaways:
The stock market is already sorting winners from losers as artificial intelligence spreads through the economy.
Companies with workforces ripe for AI streamlining are outperforming the market.
A study titled “Generative AI and Firm Values,” by researchers from the University of California Los Angeles and the University of Southern California, is attempting to quantify the impact of AI on the economy.
The study is specifically looking at the shock waves created by the release of the ChatGPT program.
