As leading tech companies manage extensive layoffs alongside substantial AI investments, will their financial strategies pay off?
In a Reuters article, Assistant Professor of Management at Columbia Business School, Daniel Keum, discusses the impact of generative AI on the tech industry. As tech giants like Google and Amazon continue to announce layoffs alongside significant investments in AI, Keum offers his perspective on the long-term profitability of these technologies.
Keum highlights the potential delays in financial gains from AI technologies and suggests that it might take longer than expected to see substantial returns. His analysis is rooted in historical examples where new technologies took a decade or more to become profitably integrated into business models.
Read the full article to understand the economic effects of AI investments and the strategic decisions influencing the future of tech companies.
Mentioned Faculty
Daniel Keum
Daniel (Dongil) Keum is an Associate Professor of Management at Columbia Business School. His research interests lie in innovation, organizational structure, labor market policy, and their application to public policy formation. He holds a PhD from NYU Stern School of Business and an AB with high honors in economics and mathematics from Dartmouth College. Prior to pursuing a career in academia, Daniel worked at McKinsey & Company for four years. His primary industry experience is in retail, fashion, and corporate portfolio restructuring.