What artificial intelligence means for companies and governments
Sep 25, 2023
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Vincent Gusdorf and Christian Fang discuss the hype around generative AI, sectors at the forefront of AI's potential, challenges and downsides of integrating AI, and the economic implications of AI including increased productivity and innovation.
The shift towards new architectures, increased data availability, and improved computational power contributes to advancements in AI.
Implementing AI beyond simple off-the-shelf tools requires significant effort, resources, and overcoming implementation hurdles like data gathering and model deployment.
Deep dives
AI's Journey and Recent Developments
AI has been around for decades, but it gained significant attention in 2023 due to advancements in neural networks and increased computational power. ChatGPT became a breakthrough in AI, but it built upon previous innovations. The key lies in the shift towards new architectures, increased data availability, and improved computational power.
Monetizing AI and Implementation Challenges
AI, particularly generative AI like ChatGPT, offers various business applications and can automate tasks. However, implementing AI beyond simple off-the-shelf tools requires significant effort and resources. Many companies struggle to integrate AI deeply into their operations, resulting in stagnation. Additionally, monetizing AI can be challenging, as using similar tools across industries eliminates differentiation. Implementation hurdles, such as data gathering and model deployment, further complicate the process.
Winners, Losers, and Sector Implications
Companies already performing well in other aspects of their operations are more likely to benefit from AI integration. These companies have higher earnings and financial resources required for AI implementation. On the other hand, underperforming companies with conflicting priorities and limited cash flow may struggle to go beyond basic AI integration. Semiconductors, big tech companies, and customer-facing industries are expected to be the biggest winners, while asset-heavy industries may face initial challenges in leveraging AI.
In this episode of the Big Picture podcast, we discuss the hype around generative AI, which sectors and countries stand to gain most, and the risks they need to manage.
Guests: Vincent Gusdorf, Senior Vice President within the Digital Finance group at Moody’s Investors Service (MIS), and Christian Fang, VP-Senior Analyst in the Sovereign Risk group at MIS.
Host: Matt Bridle, AVP within the Research Group at Moody’s Investors Service
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