Artificial Intelligence Boosts Brand Value
The Brand Finance US 500 2024 Report reveals AI innovation is a powerful driver of brand value across industries
March 20, 2024 (NEW YORK) – Amid ongoing – and sometimes heated – discussion around the application, impact, and actual business value of artificial intelligence (AI), new data reveals that AI is already accelerating the value of American brands. The US 500 2024 report published by Brand Finance reveals significant increases in brand value among brands that have invested in AI.
NVIDIA is now United States’ fastest growing brand, with a brand value increase of 163% to USD 44.5 billion. Brand Finance's research indicates significant improvements in key brand metrics such as familiarity, consideration, and recommendation levels, reaffirming NVIDIA's status as a frontrunner in the AI space. Microsoft (brand value up 78% to USD 340.4 billion) has also recorded an impressive brand value increase, jumping up two spots to become the 2nd most valuable brand in the US and world as the company’s AI strategy has positioned it as a major player in the application and monetization of the emerging technology. Fellow GPU manufacturer AMD has also recorded a solid 27% brand value increase to USD 8.8 billion, fueled by its remarkable financial performance and strategic initiatives in AI and high-performance computing.
Laurence Newell, Managing Director, Brand Finance North America, commented:
“Brand Finance's latest findings highlight the transforming power of artificial intelligence across industries. While AI generates significant buzz and positively impacts brand value, its full potential is still unfolding, presenting brands with a promising opportunity.
For example, in our latest research among IT decision-makers, AI leadership and expertise emerge as the single most important factor driving consideration for IT consulting and digital transformation players. This data indicates that being perceived as an AI-related brand will likely fuel future growth, whether the brand is an innovator, implementing new technology, or simply communicating its views on AI."
The impact of AI on brand value extends beyond the technology sector, driving brand value growth across various industries in the Brand Finance US 500 2024 ranking. Johnson & Johnson (brand value up 5% to USD 13.4 billion) uses AI in drug discovery, employing image recognition technology to analyze microscopic compounds, thereby accelerating research and development efforts for various diseases. Financial institutions like Ally Bank (brand value up 31% to USD 2.8 billion) have incorporated AI-powered chatbots into their mobile platforms to provide personalized customer assistance, while companies like American Express (brand value up 7% to USD 36.5 billion) and Bloomberg (brand value up 22% to USD 7.1 billion) have implemented AI programs to streamline internal processes and improve decision-making.
America's continued dominance in the technology sector is exemplified by Apple regaining its position as the most valuable brand, both in the United States and globally. With an exceptional brand value growth of USD 219.1 billion (a 74% increase) to USD 516.6 billion, Apple has grown its brand value through strategic diversification and premiumization, moving away from heavy reliance on iPhone sales towards ventures into wearables and services such as Apple TV subscriptions. According to our research, more than 50% of respondents recognized Apple as expensive, but worth the price, reinforcing the brand’s ability to demand a price premium.
Brand Finance’s research finds that Apple’s brand remains strong, with a brand strength index score of 86.5 out of 100. Apple is one of the world’s most recognized brands, illustrated by its high brand awareness, averaging 96% across the 17 countries researched by Brand Finance. In the US, Apple’s home market and biggest in terms of revenue, the brand ranks highest among tech brands in perceptions of product quality.