Plus: Lenovo Group records its fastest revenue growth in years. And AI is boosting productivity gains in very specific tasks, but has yet to scale across the economy. Julie Chang hosts.
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[00:00:00] [SPEAKER_02] Many companies are struggling to scale their AI deployments or even move them past the pilot stage. Often the problem isn't technology, but organizational misalignment around goals, processes and incentives. At the break, join Caroline Roach, senior partner IBM Consulting, to learn why.
[00:00:16] [SPEAKER_00] Here's your afternoon TNB Tech Minute for Friday, May 22nd. I'm Julie Chang for The Wall Street Journal. Stocks of space companies are skyrocketing. Driven by SpaceX's move toward an initial public offering earlier this week. AST Space Mobile closed up about 10%. Virgin Galactic closed up nearly 18%. Shares of spacecraft maker Firefly Aerospace closed up over 15%.
[00:00:42] [SPEAKER_00] And satellite builder Rocket Lab also closed up about 8%. Firefly went public last summer after guiding the first successful private moon landing. Meanwhile, Rocket Lab has fixated on going head-to-head with SpaceX, Blue Origin and other industry powers. Lenovo Group recorded its fastest revenue growth in years, driven by strong demand for AI-enabled devices and AI infrastructure.
[00:01:08] [SPEAKER_00] The world's largest personal computer maker said net profit rose nearly six-fold to $521 million, far above analyst estimates per a FactSet poll. The company's revenue surged 27% to $21.6 billion for the quarter that ended in March. Lenovo has now set its sights on $100 billion in annual revenue, a milestone it expects to achieve within two years.
[00:01:34] [SPEAKER_00] Lenovo remained the world's leading PC maker with a 25% market share, but faces a global memory chip shortage. Shares are up nearly 20%. And AI is already boosting productivity gains in very specific, well-defined tasks. But these increases have yet to scale sharply across the whole economy. That's according to a Bank of America note.
[00:01:58] [SPEAKER_00] For now, the economists say that economy-wide productivity is only rising about 0.1% per year. However, in the long term, they say the impact of AI on total productivity could be 10 times larger. And in an optimistic case, could increase global growth to 4.5% over the next decade. Heads up, we'll be off on Monday for the holiday, but we'll be back on your feed Tuesday morning with our Tech News Briefing Podcast.
[00:02:25] [SPEAKER_02] Scaling AI successfully requires more than the right technology. Here again is Caroline Roach, Senior Partner, IBM Consulting.
[00:02:32] [SPEAKER_01] The biggest thing that we were talking about a year ago is what model to use. And the biggest thing that I'm talking about with my clients now is how do I drive change within my organization.
[00:02:44] [SPEAKER_02] Companies able to identify, correct, and then avoid misalignment will be best positioned to deliver meaningful business value from AI.
[00:02:50] [SPEAKER_01] The organizations that are the most successful set very clear targets and have several priorities that are very clear across the enterprise. The technology is really good, but if you're not changing your organizational alignment, not incentivizing your people correctly, not looking at workflows, you're not going to see real value with it.
[00:03:11] [SPEAKER_02] Visit IBM.com slash think slash leadership to learn how building organizational alignment can help deliver AI deployments that scale and drive growth.
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