New Delhi, Aug. 22 -- The growing adoption of Artificial Intelligence (AI) by corporates could play a key role in reducing the impact of tariffs imposed by the US and help companies navigate through these challenges, according to a report by HSBC.

The report highlighted that among 44 S&P 500 companies in its sample, managements reported a median operating cost reduction of 1.5 per cent, along with efficiency gains averaging an impressive 24 per cent.

HSBC noted that if AI adoption across the S&P 500 can deliver an aggregate 1 per cent cost saving, a scenario it considers viable, it could offset nearly one-quarter of the burden from a 20 per cent effective tariff.

It stated "Tariffs are a headwind for margins but could also be a catalys...