AI productivity gains unproven, big tech must show results, not just talk.

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In recent years, artificial intelligence has been touted as the game-changer for productivity, promising unprecedented efficiency and innovation. However, a closer look at the data and actions of major tech companies reveals a different story. Despite the grand promises, the actual productivity gains from AI remain elusive.

Big tech companies like Meta and Salesforce have made significant investments in AI technologies. Yet, the expected productivity improvements have not materialized. If Meta’s own Llama model truly enhanced productivity in coding, sales, or other areas, we would see substantial workforce reductions beyond the usual performance-based cuts. Instead, Meta continues to follow the standard industry practice of firing the bottom 5% of performers annually—a clear indication that AI has not delivered the promised productivity revolution.

Salesforce is another telling example. CEO Marc Benioff has spoken about hiring 2,000 new salespeople to sell AI-driven features. But why hasn’t his own sales force become more productive thanks to these very AI features? If Salesforce’s AI products genuinely improved productivity, Benioff would be showcasing metrics like “Our salespeople are generating 25% more revenue per person.” Instead, the reality is quite the opposite. Salesforce’s productivity has declined, with all growth attributed to price increases rather than enhanced sales efficiency. This contradiction underscores the gap between the AI hype and the ground reality.

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The situation is even more striking when considering the broader market. Public companies have yet to demonstrate substantial AI-driven productivity gains. Any cost savings they have achieved have largely come from cutting non-essential roles, such as those glorified on social media for their perks rather than their output. This approach does not reflect genuine productivity enhancements from AI but rather a return to traditional cost-cutting measures.

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For AI to gain true credibility and drive widespread adoption, tech companies need to move beyond the rhetoric and deliver tangible results. Investors and customers are looking for demonstrable improvements in efficiency and performance, not just promises. AI must prove its worth by delivering measurable productivity gains that go beyond price adjustments and workforce reductions.

The AI revolution will only gain momentum when tech giants can showcase real, quantifiable benefits from their investments. Until then, the touted productivity gains remain largely unproven, raising questions about the true impact of AI in the business world.

Sources:

https://x.com/ecommerceshares/status/1879496722742693967

https://www.msn.com/en-us/money/companies/meta-s-performance-based-cuts-fall-short-of-promised-ai-productivity-gains/ar-AA1xjlkQ

https://www.msn.com/en-us/money/companies/salesforce-ceo-benioff-continues-to-hire-despite-ai-productivity-claims/ar-AA1xksJF

https://www.msn.com/en-us/money/technology/big-tech-s-struggle-to-prove-ai-productivity-gains/ar-AA1xjWQT

https://www.msn.com/en-us/money/technology/why-ai-productivity-gains-remain-elusive-for-public-companies/ar-AA1xkt6H

https://www.msn.com/en-us/money/companies/the-true-costs-of-ai-investments-for-tech-giants/ar-AA1xklLP


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