AI will be profitable for executives seeking ‘cost savings’

CNBC’s Jim Cramer on Wednesday shared his main takeaway from the artificial intelligence-focused conference Dreamforce: AI will be huge for executives looking to save money.

Cramer explained that current AI use cases may not be exciting for consumers, but they will save data-driven businesses time and money.

“The use cases for AI, I mean the profitable ones, are almost entirely uninteresting, unseen, soporific, but they work,” Cramer said. “In short, this is an incredible technology for executives looking for cost savings, but for everybody else, it’s borderline meaningless at least when it comes to earnings, for now. Although it can be a lot of fun.”

According to Cramer, AI can help companies in numerous sectors such as banking, insurance and health care run more efficiently.

Banks have a lot of “wasted man-hours,” he said, and AI models can draw up simple documents, which frees up time for loan officers to write more lucrative loans. The technology also can help insurance companies use their data in more precise ways while making fewer mistakes when writing policies, Cramer said.

Similarly, he said drugmakers can use AI to sort through predictive data in order to make better decisions about moving forward with costly clinical trials.

“The use cases for AI, they may not be exciting, but they’re giving us one more reason to keep owning some really high quality stocks. Because these productivity improvements will show up in the numbers someday,” Cramer said.

The only company making fortunes off AI right now is Nvidia, says Jim Cramer

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