US firms push AI spending to record high in October
US companies' spending on artificial intelligence reached a record high in October, but monthly growth slowed to 1.65 percent.
US companies' spending on artificial intelligence reached a new record high in October. This is shown by the Ramp AI Index, which tracks AI spending by US firms. Monthly growth, however, was 1.65 percent, markedly weaker than before.
The business is strikingly concentrated. According to the available figures, around 80 percent of the revenues of OpenAI and Anthropic come from about one percent of companies. Broad demand for AI services is therefore less widespread than the overall numbers suggest and depends heavily on a small group of large customers.
So far, growth has been driven mainly by the business with programming tools. Software development has been the main driver of spending to date. However, a new driver is emerging: customer service. AI applications in support are gaining importance but are likely to have lower margins than the programming business.
For providers, this means growth could shift to new areas of application in the future, while profitability there may be lower. Whether customer service can close the gap left by the slowing growth is not evident from the available information.
Source: the-decoder.com
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