AI to Save Companies $1 Trillion Annually: Morgan Stanley Report

A new report from Morgan Stanley estimates that corporate adoption of AI has the potential to save S&P 500 companies nearly $1 trillion annually, with $920 billion in annual net benefits and $13 trillion to $16 trillion in long-term market value creation potential. Savings will come from cost reduction and productivity increases, but will not come all at once, with up-front costs and returns not realized until years later. AI is expected to impact 90% of jobs, but not necessarily make them obsolete. The sectors with the highest returns are consumer staples distribution, retail, real estate management, and development and transportation.