Key takeaways- A massive increase in mentions of Artificial Intelligence (AI) and related topics on quarterly earnings calls since the public release of OpenAI’s ChatGPT large language model at the end of 2022 reflects the fast-paced advancement of Generative AI systems and their growing cross-sector relevance
- While, thus far, companies driving the AI conversation are well-established technology leaders, it is expected to steadily expand also among non-tech industries
- Longer term, the conversation around AI is expected to continue at an elevated level with management teams providing more details regarding their plans to integrate AI in their operations and launching new AI-enabled products
Who is talking about AI and what are they saying?Understandably, the companies driving the conversation are well-established technology leaders the likes of NVIDIA, Microsoft, and Adobe. These companies’ management teams have made bold pronouncements and predictions related to the impact of AI advancements on their businesses and society:“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process” – Jensen Huang, NVIDIA CEO 1"Next generation of AI will unlock a new wave of productivity growth, with powerful copilots designed to remove the drudgery from our daily tasks and jobs, freeing us to rediscover the joy of creation” – Satya Nadella, Microsoft CEO 2“Generative AI in the creative space is going to augment human ingenuity…the winning companies are those who recognize that there’s a complete workflow associated with it” – Shantanu Narayen, Adobe CEO 3Thus far, technology companies have been more vocal regarding their views on the latest in AI developments with mentions on quarterly conference calls increasing 3.2x from the five-year average. Meanwhile, non-technology companies have also increased their mentions of AI though not at the same level as their tech counterparts.
Allianz Global Investors (‘Allianz’) expect the AI conversation to steadily expand among non-tech industries as these companies explore and adopt the latest developments in the space, particularly those around Generative AI. Executives from sector leaders such as JPMorgan and Eli Lilly have articulated their views on how Generative AI and other AI technologies could impact their respective industries.“AI is real. This is a technology which is staggering…we’re already using them to do risk, fraud, marketing, prospecting and it’s the tip of the iceberg.” – Jamie Dimon, JPMorgan CEO4“We’re using generative AI to help our scientists identify new molecules that could lead to new medicines…discovering different ideas than typically appear to the human mind” – Dave Ricks, Eli Lilly CEO5What’s next in the AI discussion?Allianz expects the conversation around AI to continue at an elevated level and look for management teams to provide more details regarding their activities in that space. Allianz anticipates companies will highlight their plans to integrate AI in their operations as well as launching new AI-enabled products.For instance, Microsoft will soon expand the availability of their Generative AI-enabled 365 Copilot which automates activities in the Office 365 suite. Allianz believes the 365 Copilot will be the first of many such products launched with the potential to accelerate growth and productivity across sectors.Longer-term, Allianz expects investments by non-technology companies in the latest AI tools such as large-language models and Generative AI to yield significant productivity enhancements. The breadth of applicability and transformational potential will necessitate coordination between private and public entities to ensure the safety and reliability of these new tools, in Allianz’s view.Want to search and invest in related funds?Open the WeLab Bank App and click【GoWealth > Pick your own funds > Equity > AI Technology】to find out more!Do not want to miss our latest product offerings, promotions and wealth management tips? Visit the App and proceed to【Settings > Marketing preferences】to accept receiving our marketing communications as well!Source:1 NVIDIA Q1 2024 Financial Results Press Release2 Microsoft: Reinventing productivity with AI
3 Stanford GSB View from the Top: Generative AI Won’t Replace Human Ingenuity
4 Bloomberg on YouTube 3/9/2023
5 LinkedIn Post by Dave Ricks on 3/21/2023Importance NoticeThis document is for general information only. The information or opinion herein is not to be construed as professional investment advice or any offer, solicitation, recommendation, comment or any guarantee to the purchase or sale of any investment products or services. This document is for general evaluation only. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person or class of persons and it has not been prepared for any particular person or class of persons. The investment products or services mentioned in this webpage are not equivalent to, nor should it be treated as a substitute for, time deposit.The information or opinion presented has been developed internally and/or taken from sources (including but not limited to information providers and fund houses) believed to be reliable by WeLab Bank, but WeLab Bank makes no warranties or representation as to the accuracy, correctness, reliabilities or otherwise with respect to such information or opinion, and assume no responsibility for any omissions or errors in the content of this document. WeLab Bank does not take responsibility for nor does WeLab Bank endorse such information or opinion.Investment involves risks. The price of an investment fund unit may go up as well as down and the investment funds may become valueless. Past performance is not indicative of future results. WeLab Bank makes no representation or warranty regarding future performance. Any forecast contained herein as to likely future movements in interest rates, foreign exchange rates or market prices or likely future events or occurrences constitutes an opinion only and is not indicative of actual future movements in interest rates, foreign exchange rates or market prices or actual future events or occurrences (as the case may be).You should not make any investment decision purely based on this document. Before making any investment decisions, you should consider your own financial situation, investment objectives and experiences, risk acceptance and ability to understand the nature and risks of the relevant product(s). WeLab Bank accepts no liability for any direct, special, indirect, consequential, incidental damages or other loss or damages of any kind arising from any use of or reliance on the information or opinion herein. You should seek advice from independent financial adviser if needed.WeLab Bank is an authorised institution under Part IV of the Banking Ordinance and a registered institution under the Securities and Futures Ordinance (CE Number: BOJ558) to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities.This document is issued by WeLab Bank. The contents of this document have not been reviewed by the Securities and Futures Commission in Hong Kong.