AI’s Effect on Industry Margins Over the Next Five Years

Visual Capitalist October 8, 2024
Dorothy Neufeld

Investors have poured billions into AI-related companies, but adoption is moving slowly across American firms.

According to the Census Bureau, just 5% of American businesses have used AI to produce goods and services over the last two weeks, highlighting that market enthusiasm is not yet matching the real economy. Despite this slow progress, AI has the potential to boost productivity across a wide scope of industries, from energy to transportation.

This graphic shows AI’s effect on industry margins over the next five years, based on analysis from the Bank of America Institute.

How Will AI Impact the Operating Margin of Industries?

To examine AI’s impact on operating margins, analysts looked at roughly 3,400 companies with a combined market cap of...