Who's winning and losing in the AI revolution

Core Insights - The stock market winners from AI advancements may extend beyond large-cap tech companies currently developing AI infrastructure [1] - There is a lack of clarity on which companies are leading in the AI race [1] Group 1: AI Adoption and Economic Gains - Numerous surveys have been conducted on AI usage, but many fail to provide clear quantitative results [2] - Sparkline Capital's analysis of earnings calls reveals that companies are reporting economic value from AI applications across various industries [3] - Specific use cases include consumer marketing, medical clinic optimization, and supply chain logistics, among others [3] Group 2: Quantifiable Returns on Investment - The number of firms reporting AI-driven ROI has increased significantly from virtually zero in 2017 to 155 and 675, representing 3% and 15% of the global stock universe, respectively [6] - Companies that mention AI usage in earnings calls have outperformed the market by 3.2% annually, while those citing specific AI-driven economic gains have achieved excess returns of 4.8% and 5.2% [7] Group 3: Disruption in the Software Industry - The rise of AI technology has led to significant disruptions in the software sector, with companies opting to develop in-house applications rather than paying for third-party tools [10]