Corporate earnings calls have shared a common theme of late: operational efficiency. According to Morgan Stanley analysts, mentions of efficiency have steadily increased since 2022 . This trend indicates a significant shift in how companies are strategizing for the future. Yet the efficiency focus is about more than just cost-cutting. Greater emphasis on efficiency also has to do with technological developments, and AI in particular. As understanding of AI’s potential grows, executives have begun to anticipate new ways of reducing labor costs (labor substitution) and speeding up and improving work processes (labor augmentation) to boost productivity. According to Morgan […]
Full Post at www.aei.org