Artificial Intelligence (AI) is everywhere today. From content creation to customer support and ad targeting, companies are rushing to integrate AI into their processes. The promise is clear: faster execution, cost savings, and smarter insights. But there is one big question that every business leader wants answered: does AI actually make money for companies, or is it just another tool that looks good on paper?
AI and the Efficiency Trap
One of the biggest benefits of AI is efficiency. It can produce blogs, social media posts, videos, and reports in minutes instead of days. It can automate repetitive tasks and reduce the need for manual work. But here is the challenge: efficiency does not always equal revenue. Creating more content does not guarantee more conversions, and having more reports does not automatically mean better decision-making. If efficiency is not tied to revenue-generating activities, it can easily become a vanity metric.
Why Companies Struggle to See ROI
The issue is not that AI does not work. It is often that businesses use it for the wrong reasons. Many organisations experiment with AI tools because they are new and exciting, but they do not ask the critical question: how will this drive revenue? Without clear KPIs, AI becomes a distraction. For example, generating a video is easy. But if the script does not resonate, the targeting is not right, or the sales funnel is not optimised, the video will not generate leads or sales.
Another common problem is surface-level adoption. Teams may use AI for quick wins such as writing an email or brainstorming ideas, but they stop short of integrating it into their workflows. Real ROI comes when AI is embedded into processes, tested consistently, and aligned with a broader strategy
The Investment Phase of AI
Right now, many companies are in what I call the “investment phase” of AI. They are spending money on tools and experimenting heavily, but revenue gains are limited. This is similar to the early days of the internet, when businesses poured resources into websites and online infrastructure before profits caught up. For most businesses, AI is currently about building long-term capability rather than immediate revenue.
Where AI Can Drive Revenue
While not every use of AI shows results today, there are several areas where it already delivers measurable financial impact:
1. Personalisation at scale
AI enables businesses to deliver highly targeted experiences to each customer by analysing their past behaviours, preferences, and interactions. Retailers, for instance, can recommend products based on browsing history or past purchases, increasing conversion rates and average order value. In B2B environments, AI can segment leads more intelligently, ensuring marketing efforts reach the most promising prospects.
2. Smarter advertising
AI-driven ad optimisation helps businesses maximise the return on their advertising spend. By automatically testing multiple ad creatives, adjusting bids in real-time, and targeting audiences based on live data, AI reduces waste and ensures that every pound spent delivers a measurable outcome. This approach also helps businesses identify underperforming campaigns early, making it easier to reinvest in what works.
3. Sales acceleration
In sales, AI can act as a virtual assistant, identifying the most qualified leads, suggesting the best times to reach out, and even drafting personalised follow-up emails. AI-powered CRMs can analyse customer data to predict which prospects are most likely to convert, allowing sales teams to focus their efforts where they are most effective. This not only shortens the sales cycle but also increases overall win rates.
4. Forecasting and pricing
Predictive analytics powered by AI allow companies to forecast demand more accurately, optimise stock levels, and adjust pricing dynamically based on market conditions. For example, travel and hospitality brands use AI to adjust prices in real-time depending on demand trends, while retailers can prevent overstocking and markdown losses by predicting what customers will buy next.
5. Customer support and retention
AI chatbots and virtual assistants provide 24/7 support, reducing response times and improving customer satisfaction. More importantly, AI can analyse support interactions to identify recurring issues and suggest proactive solutions, which helps improve retention rates and customer lifetime value.
My Perspective as a Digital Marketer
From my own experience, AI works best when it builds on a strong foundation. If a campaign is already converting, AI can help scale it, refine the targeting, or test new variations faster. But if the strategy is not solid, AI will only help you make mistakes more quickly. AI is not a replacement for strategy. It is an amplifier of it.
Final Thoughts
So, does AI actually make revenue for companies? The honest answer is: not directly, and not always immediately. AI is an enabler, not a miracle worker. When applied with purpose, anchored to KPIs, integrated into workflows, and focused on amplifying proven strategies, it can absolutely boost revenue. But if it is treated as a shiny experiment, it risks becoming just another line in the budget with little to show for it.
The future of AI in business is not about doing more. It is about doing what matters better, faster, and at scale.