AMC CEO Says He Has Personally Abandoned Google In Exchange For ChatGPT: Here's How The Company Is Using Artificial Intelligence
AMC CEO Adam Aron announced the company's shift from Google to OpenAI's ChatGPT, emphasizing AI's role in enhancing operations, including software development and marketing. During the second-quarter earnings call, he revealed AMC's revenue reached $1.4 billion, exceeding expectations, with a 35% year-over-year increase. Aron mentioned potential investments in AI technology to improve pricing and customer service. Despite challenges, Google continues to develop its AI capabilities, competing with ChatGPT. AMC shares rose 3.41% before a slight decline in after-hours trading.
AMC Entertainment Holdings Inc.’s AMC CEO Adam Aron has revealed that he has switched from Alphabet Inc.'s GOOG GOOGL Google to OpenAI's ChatGPT and explained how artificial intelligence is transforming the company’s operations and fueling growth.
AMC Embraces AI Across Operations
During AMC Entertainment’s second-quarter earnings call on Monday, Aron shared how the company is leveraging AI to drive significant improvements across its operations.
Aron stated that he had personally "abandoned Google in exchange for ChatGPT" and highlighted how AI is becoming a core part of AMC's strategy.
"We're already using it [AI] in software development, software optimization and software testing. We're using it in image creation for marketing. We're using it for the automation and simplification of tasks here in our corporate office," said Aron.
He also highlighted AI's role in demand planning for AMC's theaters.
AI And Investments In The Entertainment Sector
Aron shared that AMC is in discussions to make small investments in AI technology-enabled businesses.
"We've just scratched the surface with AI," Aron said. "Going forward, there'll be an opportunity for us to take care take advantage of the powerful AI technology to assess with our pricing, with our film scheduling, with our customer service programs and our consumer response programs."
AMC’s Second-Quarter Financial Performance
AMC's second-quarter results showed impressive growth, with revenue reaching $1.4 billion, surpassing analyst expectations of $1.34 billion.
The company reported a significant year-over-year revenue increase of 35%, driven by a 25.6% rise in attendance, totaling approximately 62.81 million.
Google Vs ChatGPT And Other AI Platforms
In December 2022, Google launched a 100-day mission to build a rival to OpenAI's ChatGPT, tasking veteran executive Sissie Hsiao with assembling a team to create the chatbot Bard, now under the Gemini umbrella.
The effort was part of a "code red" response to ChatGPT's rapid rise and its integration into Microsoft Corporation's MSFT Bing search engine.
Despite early setbacks — including inaccuracies, offensive responses and a factual error in a marketing video that dented Alphabet's stock — Google accelerated Bard's development, branding it an "experiment" to manage expectations.
To strengthen its AI push, Google merged its DeepMind and Google Brain teams, resulting in the Gemini language model, which reportedly surpassed ChatGPT in several tests.
Today, the tech giant maintained confidence in its long-term AI competitiveness, but the platform's ability continues to be pitted against the likes of ChatGPT, Reddit Inc. RDDT, Perplexity and more.
Price Action: On Monday, AMC shares rose 3.41% before slipping 0.67% in after-hours trading to $3.01 at the time of writing, according to Benzinga Pro.
Benzinga's Edge Stock Rankings indicate that AMC has been trending downward across short, medium and long-term periods. Additional performance details are available here.
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