Earnings Calls Embrace AI: How Microsoft, Alphabet, Meta, Amazon And Intel Are Talking Tech For Growth

Earnings calls have commonly been a haven for buzzwords and technical jargon. With the advent and growth of artificial intelligence, many corporations have been increasingly using the term as they address investors and analysts. Benzinga has noticed an uptick in the use of the term ‘AI’ in conference calls as corporations report their third-quarter earnings.

There is a noticeable shift in the business jargon that is being used in earnings calls. While company executives discuss financial results and strategies with investors and analysts, they’re also now mentioning the term “AI” being more frequently in these discussions. This is indicative of the increasing influence of artificial intelligence on business performance and strategy.

Here are some quick stats that we’ve compiled to drive home the point:

• Microsoft Corp MSFT mentioned ‘AI’ 53 times on its Q1 2024 earnings call vs. 66 times in its Q4 2023 earnings call.
• Alphabet Inc GOOG GOOGL aka Google mentioned it 65 times in its Q3 2023 call vs. 79 times in the Q2 2023 quarter.
• Intel Corporation INTC: mentioned ‘AI’ 56 times on its Q3 2023 call vs. 64 mentions the last quarter.
• Meta Platforms Inc META mentioned it 68 times in its Q3 2023 call vs. 58 times in the Q2 2023 quarter.
• Amazon.com Inc AMZN: 45 mentions in its Q3 2023 call vs. 32 times last time.

Methodology

There’s been a slight drop in “AI” mentions during MSFT and GOOGL calls. This could be signalling a shift towards a dialogue that is more goal-oriented.

Businesses to whom AI isn’t a nascent technology anymore, are talking more and more about the tangible advantages and outcomes of AI applications instead of obsessing over the technology itself. They prefer discussing specific technological implementations of AI in their business, in more precise terms.

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The rise of AI in earnings calls can be attributed to a number of factors, including:

AI Integration In Operations: AI is being used by many businesses to optimize operations, streamline processes, and improve decision-making. AI is increasingly becoming a critical tool for efficiency and cost savings, from predictive analytics to supply chain optimization. As a result, it is unavoidably mentioned in discussions about financial performance and prospects.

Investor Interest: Shareholders and investors are increasingly interested in learning how artificial intelligence affects a company’s bottom line. They recognize that artificial intelligence (AI) can be a game changer in terms of revenue growth and cost reduction, and they want to hear how businesses are leveraging this technology to achieve results.

Competitive Advantage: AI is increasingly being used by businesses to gain a competitive advantage. AI is a differentiator, whether it’s through personalized customer experiences, innovative product development, or data-driven marketing campaigns. As a result, executives must highlight their AI initiatives in earnings calls to demonstrate their strategic advantage.

Regulatory And Ethical Concerns: The impact of AI goes beyond corporate performance. Compliance with AI-related regulations, ethical considerations, and data privacy are all part of it. Addressing these issues during earnings calls allows companies to demonstrate their commitment to responsible AI use.

The widespread usage of the term “artificial intelligence” in corporate earnings calls attests to the technology’s undeniable influence on the state of business today. Keeping an eye on these conversations is essential for stakeholders and investors alike, as it offers insights into a company’s innovation, strategic vision, and readiness for a future driven by technology.

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