Steve Cohen says his financial firm can already save $25 million by using AI

Billionaire investor Steve Cohen, founder of Point72 Asset Management, shared insights on the impact of artificial intelligence (AI) in the business world during an interview with CNBC’s Andrew Ross Sorkin. Cohen revealed that his financial firm has harnessed early AI models to achieve significant cost savings, citing an example where the firm could save $25 million by leveraging large language models (LLMs) like ChatGPT to enhance efficiency. Emphasizing the potential of AI to drive savings and operational improvements, Cohen highlighted the scalability of such advancements, noting how even larger companies could benefit immensely.

The widespread enthusiasm for AI has been a key driver behind market momentum in 2023 and the early months of this year, particularly benefiting chipmakers like Nvidia and tech giants including Microsoft that are closely aligned with AI technologies. Beyond specific industry sectors, there is a broader optimism that AI can enhance operational efficiency across various businesses. Cohen underscored AI as a long-term and essential investment theme, stressing the necessity for all companies to proactively consider how AI can transform their operations to stay competitive in the evolving business landscape. He cautioned that companies failing to embrace AI risk falling behind and encountering challenges in the future.