Wall Street continues to be crazy about AI, with some companies investing heavily in it but also raising questions about how it will actually be used.
Brent Thill, Senior Analyst at Jefferies, joins Market Domination Overtime to provide insight into AI use cases and what investors and consumers can expect in terms of how AI will be used going forward.
“It's all in the infrastructure. You look at energy, you look at data centers, you look at the great performance of NVIDIA (NVDA). We've been talking about AI being in the infrastructure, not the applications. AI is going to be pervasive and it's going to permeate our lives. I think you're already seeing it in some of Google's (GOOG, GOOGL) products. You see it every day when I use Perplexity. A lot of financial services organizations are starting to adopt Microsoft Copilot (MSFT) right now, and we're still early access, so we're all in the process of getting trained.”
He continued on about the potential timeframe before AI really takes hold: “I think every industry will be affected, but it's going to be a slow process. It's not going to happen overnight. And I've said… companies like Salesforce.com (CRM) have said they make zero revenue from AI. So it's going to be in your local cinema. It's not out yet, but it's going to be a long time.”
For more expert insights and the latest market trends, click here to watch this entire episode of Market Domination Overtime.
This post Nicholas Jacobino
Video Transcript
Something you said earlier this year that really stood out to me was that 2024 would be the start of AI implementation.
And 2025 is going to be a really profitable year.
As you start to see more of that.
You know, there's a general sense of skepticism about not just software, but whether AI will bring about all the changes that people are talking about as it advances.
So, we talked a few months ago about what the killer use cases are, how this will play out for the rest of this year and next year, and so on, but it's all about infrastructure.
When you look at energy data centers, Nvidia is outperforming.
We've talked about how AI is an infrastructure, not an application, that will become pervasive and permeate our lives.
You've probably already seen it in some of Google's products.
You can see this in my everyday bewilderment: Many enterprises, financial services organizations are starting to adopt Microsoft Copilot, and we're just getting early access.
So we are all trained.
We are learning, we are not AI ninjas.
Me, me, I'm an AI newbie right now and I'm still learning how to use these products.
And also, we're, you know …
Dip your pinky in the water with AI today.
And we said: In software, it goes really slow, it goes slower than we think it will, but then it accelerates very quickly.
This means that we overestimate in the short term and underestimate in the long term.
The use cases are very broad and range from healthcare, radiology detection, and patient issues that doctors can't address.
Yes, we see it in healthcare, we see it in financial services, we see it in making better decisions, we see it in everyday email.
For example, how can I write better, how can I write better-structured emails, how can I make sure I don't forget something, etc.
How do you set sales targets?
You know, there are so many use cases that I could talk about for hours, and I think every industry is going to be impacted. It's going to be a slow process, it's not going to happen overnight. I keep saying, I don't believe in software. You know, this year we've had companies like Salesforce.com saying they have zero revenue from AI.
So, it will be coming to a theater near you.
It's not out yet, but it will be a while.
It's all about enabling infrastructure.
So '24 is the year of infrastructure, highways, land procurement, building, building, building infrastructure, building pipes, all of that, and then these applications are going to be installed on top of that infrastructure.
That's around late 24 to 25 years old.
And, look, they're going to be huge AI disasters.
I'm sure that will be the case.
And now I think it's easier to pick winners and losers because we know who's winning.
Microsoft won.
Amazon will win.
They account for 50% of the cloud computing market share.
Many of the major companies we work with are expressing interest in using AI to help their customers.
So it's really really fast.
Ah, it looks like it's going to be a fun trip.
It's going to be a wild ride.
But again, I think we're just kind of at the beginning of this journey and other companies, like sales forces, will catch up later.
And there are ways to play this even for laggards.
So that means there are probably over 25 ways to play it.
Not 24.
Well, we'll continue that discussion as we go from dipping our pinkies in the water to diving in. And maybe at some point, Brent, it'll be great to catch up with you, as always.
thank you.
thank you.
