AI to drive productivity and margin expansion over time Companies have faced rising cost pressures as they emerged from the short-lived COVID downturn. The price of raw materials, labor and money has all risen but there are positives that come with this changing dynamic-companies are forced to focus on efficiency. Savita Subramanian believes we are at the forefront of a productivity boom driven partly by AI but also corporate necessity. Savita points out that the pace of margin deterioration has slowed since 1Q23 and she expects to see stabilizing margins going forward. A.I. helps growth and tech but also should help efficiency leaders in less efficient sectors.   You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2023 Bank of America Corporation. All rights reserved.