Early signs of AI payoff emerge in corporate earnings reports

Spending on AI is rapidly increasing, projected to reach $581.7 billion in 2025, a 130% rise from the previous year, as detailed in the Stanford HAI 2026 AI Index report. Major technology companies like Microsoft, Amazon, Google, and Meta are expected to collectively invest $700 billion this year in AI infrastructure.

Santander, a Spanish banking giant, reported that its AI initiatives generated 194 million euros ($216 million) in business value during the first nine months of 2026. Chief Financial Officer José García Cantera explained that AI is enabling employees to focus on higher-value tasks, positively impacting both revenue and costs. “This affects both revenue and costs, so we are actually in the quarter where we can actually link directly to AI a positive contribution,” he stated.

Novartis, a Swiss pharmaceutical company, also noted a positive impact from AI on its financial performance. CEO Vas Narasimhan stated that he observed AI’s contribution to the company’s bottom line for the first time. Novartis reported a 10% year-on-year increase in core operating income, reaching $6.04 billion at constant currencies.

Standard Chartered’s Chief Financial Officer Manus Costello highlighted the widespread integration of AI across the bank’s operations, contributing to a 14% increase in operating income growth. He attributed AI’s influence to improved customer relationships and enhanced income generation, alongside strong operating leverage.

Carlsberg, however, indicated that while AI has improved internal processes, its benefits have not yet reached a significant scale. The company’s revenue increased by 4.9% in the third quarter.

Several major technology companies are also reporting AI-driven growth. Meta attributed “substantial incremental advertising revenue” to its AI investments, with total revenue increasing by 26% in the quarter ending September 30. While Google Search revenue growth slowed, Google Cloud revenue more than doubled to nearly $31 billion in the third quarter.