The GAME dynamic: High fixed-cost firms to gain most from AI adoption

AI has already proven its value in customer support and programming, and its applications will only broaden as the technology matures and enterprises grow more comfortable with the tools

The golden age of margin expansion (GAME) was a theory most publicly expounded by Brad Gerstner of Altimeter Capital in various tweets and podcasts. Mr Gerstner is best known for his open letter to Meta in October 2022, near the stock’s bottom, urging the company to become fit, cut costs, and refocus on its core business. Having followed much of this advice, Meta has since become one of the best-performing technology stocks of the past three years. 

A big believer in artificial intelligence (AI) and an investor in OpenAI, Mr Gerstner believes that now the time