Azeem’s 2024 Trends: AI, Energy, and Decentralization
Jan 31, 2024
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The podcast discusses key trends for 2024, including AI adoption, decentralization technologies, and the energy transition. Topics include corporate adoption of AI, new business models around AI, and an electrified world with stable power prices. The rapid expansion of electric vehicles and the adoption of generative AI tools by corporations are also explored. Advancements in AI models and the shift towards decentralization are discussed as well.
The shift towards electrification, driven by the declining prices of solar panels and batteries, will have a profound impact on sectors like heating and industrial processes.
The rapid adoption of generative AI tools by corporations, driven by high adoption rates among executives and developers, creates a fertile environment for growth in the AI space.
Deep dives
Theme 1: Electrifying everything
The theme discusses how we are reaching the peak of global fossil fuel use and transitioning to technology-driven energy systems like solar. Solar power capacity is rapidly expanding, and the declining prices of solar panels are making it increasingly appealing. Electric vehicles are also on the rise, with an increasing selection of options and declining battery pack prices. The shift towards electrification will have a profound impact on various sectors, such as heating and industrial processes, allowing for long-term investment decisions and benefiting from learning curve effects.
Theme 2: The corporate AI agenda
This theme explores the rapid adoption of generative AI tools by corporations. Around 6% of chief digital officers surveyed had one generative AI use case in production deployment, and open AI's tools were being used by teams from 92% of the Fortune 500 companies. The interest in generative AI tools extends beyond technologists, with CFOs expressing enthusiasm for their productivity-enhancing potential. The high adoption rate by executives and developers creates a fertile environment for growth in the AI space.
Theme 3: Small AI and decentralization
The theme highlights the emergence of smaller AI models and the potential for decentralized AI systems. As evidenced by French open-source provider Mistral and Microsoft's Phi2 model, smaller models are becoming more capable and cost-effective. These models offer advantages in terms of affordability, ease of use, and control, driving demand and creating opportunities for new businesses. The trend towards decentralization is also apparent, with AI services running on local devices, enabling offline execution and opening up possibilities for distributed agentic systems.
As 2024 begins, leaders are facing increasing uncertainty and a host of difficult decisions. Azeem Azhar returns to bring clarity amid a complicated information landscape, with his analysis of 12 core themes that will shape the year ahead, including AI adoption, geopolitics, decentralization, the energy transition, and more.
The discussion specifically touches on:
What will drive widespread corporate adoption of AI.
How to think about the emergence of new business models around AI.
What you need to know about the new wave of decentralization technologies.
How leaders should think about an electrified world of stable and declining power prices.