Jim Cramer seeks proof AI is boosting profits, cutting costs

CNBC host Jim Cramer says companies must start proving that their artificial intelligence investments are generating measurable financial returns, warning he could become more sceptical if the evidence fails to emerge.

Speaking on Wednesday's episode of Mad Money, Cramer said he still believes in AI's long-term potential but wants businesses to back up the hype with hard numbers.

“I need cold hard return facts,” Cramer said. “Or, I, too, will grow more skeptical than I am now.”

He noted that the AI boom has triggered enormous spending by technology companies, with analysts projecting global AI capital expenditure could surpass $1 trillion by 2027. However, Cramer argued that corporate customers using AI have yet to demonstrate meaningful cost savings or revenue growth.

Banks among biggest disappointments

Cramer said one of his biggest concerns this earnings season is that companies adopting AI have offered little evidence that the technology is materially improving their financial performance.

“We’re still early in the earnings season but already we are not hearing anything material about the use of AI,” he said.

He singled out banks as a major disappointment, saying the financial sector appeared well-positioned to benefit from AI through automation and efficiency gains, yet executives have provided few examples of tangible improvements.

“It’s valuable, but nothing that can raise numbers. It’s not helping the efficiency ratio that we can tell and it’s not allowing them to cut back on hiring. Does that mean AI is a bust? No. But I don’t see it making much difference.”

AI infrastructure firms still benefiting

While questioning returns for AI customers, Cramer acknowledged that companies supplying AI infrastructure continue to profit from the spending boom.

He pointed to firms such as memory-chip maker Micron, saying component manufacturers are clearly benefiting, but questioned why businesses buying AI tools are not reporting even modest financial gains.

“Sure Anthropic is getting a return... The component companies are doing well,” he said. “But shouldn’t the ultimate clients ... be able to cite at least a couple of million in savings?”

Only a few companies cite AI-driven gains

Cramer noted that only a small number of companies, including fintech firm Block and cybersecurity company Cloudflare, have directly linked recent job cuts to AI adoption.

He added that some critics believe businesses may be using AI as a buzzword to justify layoffs, a practice sometimes referred to as "AI washing."

Cramer concluded that unless more companies begin reporting clear financial benefits from AI, scepticism around the technology is likely to grow despite continued investment by major tech firms.