Capital Markets Spring 2020

III

Growing Intelligence Accelerating Innovation

• With artificial intelligence (AI) further penetrating software and services, it is no wonder companies are increasingly discussing their plans for the technology with investors • However, only a minority of companies are regularly talking about artificial intelligence, indicating we are still in the early innings of the adoption of this technological revolution

I

II

Number of S&P 500 Companies Discussing AI on Earnings Calls

III

80

AI increasingly driving corporate

70

strategy and fundamentals

IV

60

50

V

40

4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

VI

Source: FactSet and Alger. Trailing 12-month average of number of companies mentioning “artificial intelligence” or “AI” on quarterly earnings conference calls.

16