Point of view1 min read
Can media, sports and entertainment prove an AI payoff?
Most companies outside Big Tech have seen no financial payoff from AI. Media, sports and entertainment would struggle to prove otherwise, and the reason is the missing foundations.
The 493 S&P 500 companies outside (very) Big Tech have seen “zero financial payoff” from AI, according to Apollo Global Management's chief economist. I suspect media, sports and entertainment businesses would struggle to prove otherwise.
My read after recent conversations with clubs, leagues, broadcasters and publishers:
- Sports: innovation labs and some smart pilots, but the way ticketing, sponsorship and content teams work day to day hasn't changed much yet
- Media: furthest ahead, earning money from licensing deals with AI companies, while inside the business AI tools are struggling to drive value at scale
- Entertainment: the conversation starts and ends with rights and licensing, so AI gets treated as a legal risk before leaders think about what it could do for the business
Proving a payoff means showing the revenue impact, the productivity gains and the cost savings, and that takes AI transformation rigour across data, tech architecture, measurement, governance and training. Without those foundations, the value delivery stays hard to prove, whatever teams are doing with tools on a daily basis.
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