Hi. This is Matt Brundage here at Bridgehouse. I recently had the chance to speak with Paul Greene, the lead portfolio manager for the T. Rowe Price U.S. Blue Chip Growth Fund. I asked him whether or not he's starting to see increased productivity at the company level as a result of all the recent improvements with AI. Here's what Paul had to say. I would say it's a mixed bag. I mean, I think there are areas where that's certainly the case.
Again, you know, I would I would probably point to Google, and Meta as being two of the most clear examples of companies who are seeing real returns on their spend here. You know, if you think about just using Meta as an example, some of the changes that Apple had made, made it harder for them to use some of their targeting techniques that they had had historically and they had to revamp the way they're doing targeting. AI has played a very large role in their ability to do that.
It's driving better products, better experience for the consumer. We're finding that users are spending more time, on their services as a result. That creates more inventory, advertising inventory for them to sell to advertisers. They're doing a better job of matching advertising, or advertisements to that inventory to the particular user, driving up its effectiveness and then they're getting pricing as a benefit of that.
And then they're also using AI to remove friction from the campaign management buying process for advertisers. So there's a number of ways that these companies are benefiting from that, and so there's a price of a more clear examples of where it's working well.
On the other end of the spectrum, we are seeing, especially in the startup space, we're seeing a lot of companies who are buying a lot of GPUs, spending a lot of money on it, raising money on the back of that but don't really have a business model or maybe even a product yet and in a lot of cases, certainly not revenue. And so there's definitely some speculation that's going on as well. And then there's a lot of companies in the middle.
Companies who are you know, maybe they're not, maybe it's not revolutionizing their business the way it is maybe at Meta, but there are a number of instances inside their company where they're finding efficiencies, whether that's customer call centers or marketing copy etcetera. I would say that's, I think, typical, when you're in a in a market, where the maturation curve is is still early.
But this is this is something that we are really focused on are making sure that there is return behind the dollars that are being spent here. And, inevitably, I think we'll also have some hiccups along the way. But I think measured over a multiyear time frame, I think there's a lot of reason to buy to be optimistic about the value that can be created from the spend in AI.