Morning Brief: The evolving dialogue on AI in the corporate world

The year 2023 was all about asking questions regarding artificial intelligence (AI), but according to Brent Thill of Jefferies, 2024 is the year to find answers. In a recent note to investors, Thill emphasized that 2024 will mark the beginning of AI implementation, with 2025 being the revenue-generating year.

Tech companies like Alphabet and Amazon are at the forefront of this AI revolution, with Nvidia and Big Tech experiencing a boost in demand. However, the broader implications of AI are just starting to be understood and quantified.

Companies like Coca-Cola and Quest Diagnostics are already embracing AI to enhance productivity and customer experiences. Coca-Cola recently announced a $1.1 billion deal with Microsoft to utilize AI-powered digital assistants to streamline operations and foster innovation.

Even seemingly unrelated industries like Halliburton are benefiting from the AI demand, as CEO mentioned on an earnings call that the trend towards AI consumption requires more power, which is beneficial for the industry.

According to FactSet, the number of S&P 500 companies mentioning “AI” in their earnings calls has been steadily increasing, indicating a growing interest in AI technologies. Investors are advised to pay attention to how companies are incorporating AI into their operations and strategies.

As the era of AI implementation unfolds, the impact on various industries and the economy as a whole will become more apparent. Stay tuned for more updates on the evolving landscape of AI in the business world.