Business Wire/AP
2025-11-06T10:30:01Z
- Investors are still waiting to see whether AI investments will lead to significant productivity gains.
- CH Robinson is one of the companies that is already realizing the benefits of AI, with productivity increasing by 40% from 2022 onwards.
One of the biggest questions in the market right now is how effective AI will be at increasing profit margins.
Tech companies spend billions of dollars a year building infrastructure to support their technology, fueling economic growth and a rising stock market in the United States. But will it ever pay off?
For some companies, the answer is already yes. And the company’s stock price is already showing major benefits.
Shares of freight logistics company CH Robinson (CHRW) are up 49% since the beginning of the year. After the company announced its third-quarter results last week, its stock price rose about 20% in one day.
BI
Informed Momentum Company founder Travis Prentiss said the stock has moved so dramatically because the company has started using generative AI.
AI can help the company provide price quotes, book reservations, respond to emails, and fulfill orders, helping the company increase its daily shipments per person by 40% since 2022. Meanwhile, CH Robinson reduced its employee base by more than 10% and increased its profit margins while expenses fell by 12%.
Below is a graph showing the company’s productivity and profit margin growth over the past few years.
An informed momentum company
“It’s not the sexiest business in the world, but everyone’s talking about AI and there’s no ROI on AI, and this is a significant exception to the rule,” Prentice told BI. “This increases productivity by 40-50%.”
“This is a story that no one really talks about: AI is actually improving business operations,” he continued. “They’re one of the outliers, but if you look at the profits they’re making, there’s a lot to emulate.”
