Company mentions of artificial intelligence and related topics on quarterly earnings calls has inflected following the public release of OpenAI’s ChatGPT large language model at the end of 2022.
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
Company mentions of artificial intelligence and related topics on quarterly earnings calls has inflected following the public release of OpenAI’s ChatGPT large language model at the end of 2022. Through the three months ended 30 June 2023, which include the calendar first quarter earnings release period, total company mentions of AI-related topics increased nearly 2.5x from the five-year average.
Number of AI-related mentions across industries
Source: Voya Investment Management, Bloomberg; as at July 2023
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 CEO1
“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 CEO2
“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 CEO3
Thus 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.
Number of AI-related mentions - Tech vs Non-Tech
Source: Voya Investment Management, Bloomberg; as at July 2023
TMT: Technology, Media and Telecom
We 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 Lily 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 CEO5
What’s next in the AI discussion?
We expect the conversation around AI to continue at an elevated level and we look for management teams to provide more details regarding their activities in that space. We anticipate 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. We believe the 365 Copilot will be the first of many such products launched with the potential to accelerate growth and productivity across sectors.
Longer-term, we expect 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 our view.
1 NVIDIA Q1 2024 Financial Results Press Release 2 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 3/21/2023
Cyber-attacks are good for business – if your business is cyber security
In a world plagued by escalating cyber threats, businesses are forced to prioritize cyber security like never before. Here are some alarming examples of high-profile cyber-attacks in 2023, emphasizing the need for robust security solutions.
Chipmakers rode the first generative AI wave. Who’s next?
Artificial intelligence certainly made headlines in 2023, but how many companies actually made money from it? ChatGPT and other generative AI tools have directly benefited a small number of stocks so far – particularly the semiconductor firms that make essential chips.
Investing involves risk. The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.
The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.
This material has not been reviewed by any regulatory authorities. In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of this document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced, except for the case of explicit permission by Allianz Global Investors. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional /professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.
This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG; Allianz Global Investors UK Limited, authorised and regulated by the Financial Conduct Authority;in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).