Investable AI_ Summary of GenAI Industry Developments 2024 - Deck. Fri Feb 21 2025

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses developments in the Artificial Intelligence (AI) industry, particularly focusing on Generative AI (GenAI) and its implications for various sectors, including finance and technology [4][6][26]. Core Insights and Arguments 1. AI Readiness and Revenue Generation: J.P. Morgan is leading in AI readiness among peers, with initiatives generating tangible revenue and enhancing productivity [4][4]. 2. Predictions for AI Evolution: The year 2025 is anticipated to be pivotal for AI, with expectations of advancements in Generative AI, Agentic AI, and Physical AI [6][6]. 3. AI Price Dynamics: A significant price war in AI is noted, with companies like Anthropic, OpenAI, and Google reducing prices by up to 75%, which is expected to increase demand due to Jevons Paradox [19][19]. 4. Hardware Innovations: Companies are investing heavily in new AI hardware, with notable advancements from NVIDIA, AMD, and others, which are crucial for supporting the growing demands of AI models [19][19]. 5. Open Source vs. Closed Source: The competition between open-source and closed-source AI models is highlighted, with closed-source models expected to dominate AGI advancements [10][11]. 6. AI in Science and National Security: AI is projected to accelerate discoveries in natural sciences and collaborate with national security agencies for various applications [12][12]. Notable Developments in AI Models 1. Model Releases: Various companies have released new AI models, including IBM's WatsonX, Microsoft's Phi-3-Mini, and DeepSeek's models, showcasing significant advancements in capabilities and efficiency [27][29]. 2. Performance Benchmarks: Models like Codellama-70B have achieved state-of-the-art scores, indicating rapid advancements in AI capabilities [27][27]. 3. AI in Financial Services: Financial institutions are increasingly adopting AI tools for customer service, fraud prevention, and market analysis, with notable implementations by firms like Wells Fargo and Goldman Sachs [62][62]. Emerging Trends and Technologies 1. Robotics and Physical AI: The emergence of humanoid robots is noted, with several models nearing production, indicating a shift towards more physical applications of AI [8][75]. 2. DeepFake Technology: The potential for both positive and negative applications of DeepFake technology is discussed, emphasizing its impact on media and security [9][53]. 3. Ethics and Regulation: The evolving landscape of AI ethics and regulation is highlighted, with new frameworks being developed to ensure responsible AI deployment [55][57]. Additional Insights - Market Sentiment: The sentiment towards AI among top companies remains largely positive, with notable exceptions [33][34]. - Job Market Impact: The integration of AI in workplaces is leading to significant shifts in job roles, with many companies restructuring to focus on AI capabilities [49][51]. This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the current state and future outlook of the AI industry.