AI is driving huge productivity gains for large companies while small companies get left behind

AI is widening the productivity gap between large and small companies, favoring larger firms that can effectively scale the technology and reduce costs tied to human workers.

Large companies are seeing steady AI-related productivity gains in terms of their real revenue per employee since the launch of OpenAI’s ChatGPT model in 2022, according to a Wells Fargo analysis. Meanwhile, the firm found that small-cap names also experienced a decline in the same period.

“While the S&P 500’s productivity is up 5.5% since ChatGPT, the Russell 2000 is down 12.3%, Wells Fargo equity strategist Ohsung Kwon wrote in a recent note to clients. “We are seeing other examples of diverging trends in consumer, industrial and financial markets.”

Groundbreaking advances in artificial intelligence this year have led major companies like Amazon to take particular advantage of the technology, finding ways to eliminate human roles that AI machines can replace.

performance S&P 500 opposite Russell 2000 The small cap index reflects this difference in productivity gains. Since ChatGPT’s 2022 launch, the broad market index is up 74% while the Russell is up just 39%.

The largest US companies have been using AI tools internally for the past few years to improve their productivity, supply chains and, in some cases, reduce headcount. A World Economic Forum study published in early 2025 found that nearly 40% of companies worldwide expect to reduce their workforce in roles where AI can automate tasks over the next five years.

Layoffs are on the rise at many large companies this year Aim, Meta, Starbucks, Seer, Microsoft And POWER SUPPLYThey announced significant and sometimes historic cuts to their total headcount. Companies have mostly cited efforts to streamline operations and growth strategies as the reason for the disruptions, but many credit AI as part of the reason human employee roles may be canceled now or in the future.

First of all, Amazon is a leader in deploying robots across its facilities, and the e-commerce giant says this improves costs and delivery times. New York Times reported In October, Amazon executives said they believed the company was on track to replace more than half a million jobs with robots, which they believe would save about 30 cents on every item Amazon picks, packages and delivers to customers. Morgan Stanley believes Amazon’s robotics efforts could save the company between $2 billion and $4 billion by 2027.

Klarna, one of the most transparent companies about how AI affects headcount, has reduced its workforce by nearly 40%, due in part to its AI investments. In May, CrowdStrike announced it would cut 5% of the company’s global workforce, citing AI efficiency and saying the technology was “flattening our hiring curve.” IBM CEO predicts 30% of non-customer-facing roles with will be cut by 2028 and said The Wall Street Journal reported earlier this year that AI chatbots replaced 200 HR workers, freeing up investments to hire more people in sales and programming.

Palo Alto Networks, Walmart And McDonald’s As we’ve previously reported, there are other companies specifically leveraging AI in a way that analysts hope will boost margins.

September One Intuit QuickBooks Small Business Insights questionnaire Of 5,000 small businesses in the US, Canada, UK and Australia, 68% reported integrating AI into their daily operations, and nearly two-thirds reported an increase in productivity.

“The numbers don’t lie,” Wells Fargo’s Kwon said in his report.