Wealth Outlook 2024 - Slow then grow

78 Wealth Outlook 2024 | Unstoppable trends How generative AI might reshape every sector Considerations: • Generative AI has the potential to be as • Outside of technology, financials and fintech revolutionary a technology as the printing are likely to be among the most impacted press, democratizing information, idea economic sectors, with natural resources and communication and creativity. climate tech the least impacted. • The efficiencies that AI can bring to many • Generative AI also brings risks associated basic business, legal and medical services with IP infringement, misinformation, will become readily apparent sooner than reinforcement of biases and tools that can many expect. increase the severity of cybercrime. A new age of human progress has dawned. Generative artificial intelligence (AI) – systems that create content such as images, text and audio with human-like results – is a game changing technology. Indeed, we believe it could prove to be as revolutionary a technology as the printing press, allowing people everywhere to enhance their creativity and share knowledge and ideas more widely and cheaply. The potential of generative AI to advance wellbeing and drive growth is tremendous. For example, new cures for afflictions such as cancer and Alzheimer’s disease may become more probable. Likewise, research to speed up the delivery of low-cost clean energy and the development of climate change– resistant crops may accelerate. For the global economy, this technology could transform the nature of work across industries and provide a much- required boost to long-sluggish productivity growth. But generative AI also comes with risks. Skewed or inaccurate data can lead to results that reinforce gender, racial andmany other biases. Gains may accrue disproportionately to select companies at the expense of those without access to similar capabilities. The production of incorrect materials and falsehoods could harm trust in generative AI itself, as can the issue of AI’s impact upon intellectual property rights. Here, we examine generative AI’s potential disruptive impact across broad economic supersectors. How generative AI may reshape technology The first wave of potential opportunities centers on the technology value stack. This supersector can be divided into a “value stack” based on impacts to different technologies ( FIG URE 1 ). The foundational layer of the stack is “silicon.” Generative AI requires massive amounts of data processing power. It also needs significant memory (i.e., temporary storage as data is transferred). We therefore see generative AI driving significant demand for multiple kinds of specialized chips, such as graphic processing units (GPUs) and application-specific integrated circuits (ASICs), as well as for memory technology. Producing such technologies requires specialist equipment and materials such as silicon wafers.