To examine AI's impact on margins, BofA Global Research analysts looked at roughly 3,400 companies with a combined market cap of about $90 trillion. Figures represent the relative change in margins, where 5% indicates an operating margin increase from 20% to 21%.

Over the next five years, artificial intelligence could fuel margin expansion in 23 out of 25 industries, with the greatest impact on software and semiconductor companies.

For semiconductor firms, AI-driven revenues could increase by 34% over this period.

Across S&P 500 companies, AI-related cost savings could equal up to $55 billion annually.