The introduction of new technologies is typically met with some combination of skepticism, critical concern, and excitement. Famously, in the early 1800s, protesting textile workers known as the Luddites, demolished automated looms as the technology threatened jobs. Later that century in the UK, automobiles were required to be preceded by someone walking ahead with a red-lantern to warn bystanders. When the personal computer was introduced, many corporate managers thought the devices were best suited for their administrative assistants. While artificial intelligence (AI) has also received a fair degree of criticism, public company executives are unanimously excited about the technology. Leveraging AI, our quantitative investment group analyzed CEO commentary during earnings calls of companies within the S&P 500 over the last three years and found that 99.2% of AI discussions were optimistic in nature. Less than 1% of CEO discussions expressed concern that AI may pose a risk or a challenge for their organization.
Source: Robeco, November 2024