Kevin O'Leary, also known as "Mr Wonderful," says artificial intelligence is helping businesses like his fight inflation and survive margin pressure brought on by new tariffs.
What Happened: In a video posted Tuesday on X, formerly Twitter, the "Shark Tank" investor broke down how companies are coping with rising costs, citing General Motors (NYSE:GM) as an example of how businesses may navigate a 45% margin hit.
"This may be the roadmap for every business," O'Leary said on Fox Business.
One-third of the margin hit, they're going to eat themselves, so they're going to have to find ways to be more productive, he said. One-third, they're going to push out on price increases, which "I agree is inflationary."
But the last third? That's where AI comes in.
He emphasized that every one of the 54 small businesses in his private portfolio is now leveraging vertical applications of AI to reduce operational costs — whether in insurance, wireless charging, or other sectors.
"We've never had tariffs before with an AI multiplier in it," he said. "This forces us to figure out a way to be more productive."
Why It's Important: O'Leary's comments come as many companies grapple with rising tariffs and inflationary pressure, especially in sectors heavily exposed to global supply chains.
His view reflects a growing consensus that artificial intelligence is not just a tech trend but a crucial tool for business survival and long-term productivity gains.
Last week, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) CEO Sundar Pichai reportedly urged employees to increase their use of AI to boost productivity, highlighting that the company must “accomplish more” without expanding headcount.
Earlier this month, Yahoo Japan also instructed its 11,000 employees to incorporate generative AI into their daily workflows, to double productivity through automation by 2028.
AI-driven automation has also contributed to a surge in tech industry layoffs, impacting as many as 80,000 workers. Microsoft Corporation (NASDAQ:MSFT), for example, has laid off 15,000 employees while simultaneously allocating $80 billion toward AI development.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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