CEOs make the message clear on AI's big payoff: Be patient
Major companies are pouring vast amounts of resources and money into artificial intelligence. However, many have yet to see any significant returns on their investment. CEOs hope to reassure shareholders that this is to be expected.
Some of the largest companies in the world are placing major bets right now on artificial intelligence. In 2023, Apple spent more than $22 billion on R&D for generative AI products. Meta projected in its latest quarterly earnings that it will spend somewhere in the range of $35 to $40 billion this year alone, largely to improve its AI infrastructure. Google's AI exec Demis Hassabis upped the ante and said that he expects the search engine giant to spend more than $100 billion on the technology. 
Sam Altman, OpenAI's CEO, has an even bigger number: Up to $7 trillion in order to transform the semiconductor industry that will power AI. That's a lot of money going into something that hasn't generated much revenue so far — with the exception of a few companies.
Patience is Key
Leaders of businesses pouring tons of resources into AI are telling shareholders to be patient and stick around for the payoff. Despite the heavy investments in AI, the returns are expected to come in the long term. Meta's stock tumbled despite beating sales expectations partly due to its heavy investments in AI and so-so revenue projections. CEO Mark Zuckerberg hoped to ease any investor concerns by stating that the downturn is temporary and the AI investments will pay off in the long run.
Elon Musk, CEO of Tesla, also emphasized the company's focus on AI during an earnings call, despite the company's plunging profits. 
Musk reiterated that Tesla is an AI company and assured shareholders that they will solve autonomy in the future.
Industry Outlook
Other CEOs in the industry have expressed caution and skepticism about the timeline and value of generative AI. There is a consensus that the real value of AI is yet to be fully realized, and it may take time for substantial returns to materialize.
Nvidia stands out as an exception, reporting significant revenue from AI demand. 
Microsoft and Alphabet also reported profits attributed to their AI sectors, showcasing the potential for growth in the AI industry.
Overall, CEOs are emphasizing the need for patience and long-term vision when it comes to AI investments, with the expectation that the big payoff will come in due time.
