The Limits of Artificial Intelligence

Talking about artificial intelligence is in season for Europe's corporate executives. The C-suite is eager to tout its abilities in riding the 21st-century wave of automation by using sophisticated machine learning or shop-floor robots. Mentions of the phrase "artificial intelligence" on earnings calls are surging, as Bloomberg Intelligence's Michael McDonough has noted. In a world where CEOs get more credit for cutting costs and buying back shares than opening factories or hiring staff, technology-driven efficiency is a carrot to dangle in front of shareholders. Stock-market valuations are stretched and spending opportunities are rare--but processing power is abundant and data storage cheap.