Ramp data Indicates Corporate AI Adoption May be Plateauing

A significant portion of corporate America has enthusiastically adopted AI, hoping for major productivity boosts. However, transaction data from fintech firm Ramp suggests that this growth may be starting to level out.

Ramp’s AI Index Shows Adoption Plateau After Months of Growth

Ramp’s AI Index, which measures U.S. business adoption of AI products using Ramp’s card and bill payment data, plateaued at 41% in May after nearly 10 months of steady growth. In May, 49% of large businesses had implemented AI in some capacity, compared to 44% of medium-sized firms and 37% of small companies, according to Ramp.

Ramp’s AI Index isn’t a flawless metric. It analyzes corporate spending data from a sample of about 30,000 companies, and since it identifies AI products and services based on merchant names and line-item details, it probably overlooks expenses categorized under other cost centers.

Businesses Begin Acknowledging Limits of Current AI Technology

However, it’s clear that businesses are starting to recognize the limitations of what current AI technology can achieve.

Last month, Klarna, which planned to replace hundreds of support agents with AI, had to rehire some staff after service quality declined due to the layoffs. Meanwhile, S&P Global reports that the percentage of companies abandoning most of their generative AI pilot projects has increased to 42%, up from 17% last year.

Read the original article on: Techcrunch

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