While the AI hype continues on Wall Street, with some companies making major investments in it, questions around how it will actually be used have arisen.
Jefferies senior analyst Brent Thill joins Market Domination Overtime to give insight into AI use cases and what investors and consumers can expect with how its used moving forward.
“It’s all in infrastructure. If you look at, energy, data centers, Nvidia’s (NVDA) outperformance. So we’ve talked about AI being in infrastructure. It’s not in applications. It will spread and it will come to our lives. And I think you’ve already seen it in some of the products that Google (GOOG, GOOGL) has. You’re seeing it in my daily use of Perplexity. You’re seeing it now, companies– in many in the financial services organizations are starting to roll out, Microsoft Copilot (MSFT), and we’re just getting initial access. So we’re all going through the training.”
He continues with the potential time frame to really see AI flourish: “I think every industry is going to be impacted and it’s going to be slow. It’s not going to happen overnight. And I’ve said this… companies like Salesforce.com (CRM) have said zero revenue from AI. So it’s coming to a theater near you. It’s not out yet, but it’s going to take a long time.”
For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.
This post was written by Nicholas Jacobino
Video Transcript
Something you told us earlier this year has just really stuck with me, which you said 2024 is gonna be the start of the implementation of A I.
And then 2025 is really gonna be the revenue year.
When we start to see that more.
As you’re aware, there’s been a little more skepticism even around, not just in software but even broadly that A I is gonna bring all these changes that have been talked about as we’ve gotten further along.
I mean, that was a few months ago that you talked about that like what is going to be the killer use case or how is this all going to play out as we head into the rest of this year and into next year today, it’s all an infrastructure.
If you look at uh energy data centers, uh Nvidia’s out performance.
So we’ve talked about A I being an infrastructure, it’s not in applications, it will spread and it will come to our lives.
And I think you, you’ve already seen it in some of the products that Google has.
You’re seeing it in my daily use of perplexity, you’re seeing it now companies, many of the financial services organizations are starting to roll out Microsoft Copilot and we’re, we’re just getting initial access.
So we’re all going through the training.
We’re learning, we’re not A I ninjas.
I, I, I’m, I’m an A I dummy right now, I’m still learning how to use these products.
And again, we’re, we’re effectively, um, you know, a, a as, as, as kids, either cannonball or put their baby toe in the water.
We’ll put our baby toe in the water right now on A I.
And so we’ve said this, that in software, it’s gonna be really slow, it’s gonna be slower than we all think and then it will accelerate super quick.
So we’re gonna overestimate the near term, underestimate the long term as they say.
And the use cases are so wide, wide, wide ranging, you know, health care, you know, radiology finding, you know, issues with, with patients that doctors can’t pick up.
Uh So you see it in health care, you see it in financial services making better decisions, you see it in everyday emails.
Like how do you write a better, how do you write a better composed email or ensure that you’re not forgetting something?
How do you, how do you do sales targeting?
How do you, there’s, there’s so many use cases we could talk for hours and I think every industry is going to be impacted and it’s gonna be slow, it’s not gonna happen overnight and I’ve said this, I don’t believe again, software to this, you know, this year companies like salesforce.com have said zero revenue from A I.
So it’s coming to a theater near, near you.
It’s not out yet, but it’s gonna take a long time.
It’s all in enabling infrastructure.
So 24 is a year of infrastructure, highway procure the land, build the build, build, build the infrastructure, the pipes, all that and then put up these applications on top of that infrastructure.
That is more of a late 24 into 25.
And look, they’re gonna be some wild A I disasters.
They’re gonna, it’s gonna happen right.
And right now it’s, is, in my opinion, it’s easier to pick the winners and the losers because we can see who’s winning.
Microsoft’s winning.
Amazon’s gonna win.
They’re sitting on 50% of the, the cloud computing market share.
They are getting looks from many of the top companies we interact with to, to help their, uh, their customers with A I.
So we are really, really early.
Uh, it’s gonna be a fun journey.
It’s gonna be a wild journey.
But again, I think we’re, we’re like the beginning of this trail and uh other companies like, you know, sales force who, who’s coming from behind will catch up.
And so there’s ways to play this too in Laggards.
Like, you know, that’s probably more of a 25 way to play.
Not a 24.
Well, we’ll keep having that discussion as we go from dipping in the baby toe to wading into diving and maybe at some point, Brent, it’s great to catch up with you as always.
Thanks.
Thank you.
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