Wealth Outlook 2024 - Slow then grow

79 Wealth Outlook 2024 | Unstoppable trends How generative AI might reshape every sector A vast amount of data infrastructure will also be built to support generative AI. Hyperscalers, essentially large cloud service providers, and other digital infrastructure specialists will supply much of this. Examples include data center–oriented firms in the US and telecom operators in Asia. Models and machine learning operations cover critical activities such as the development and training of generative AI models. Smaller, more efficient models trained on proprietary data and on-device AI – where activity takes place on specific devices such as users’ handsets rather than on cloud computers – are key trends to watch here. Generative AI is set to impact all types of software and applications. Front office software – including customer relationship management (CRM) and marketing automation and could become ever more insightful and efficient. The same is true of back- office software covering the likes of recruitment, talent management and other HR processes. And while cyber criminals are already seeking to harness generative AI for nefarious purposes, cybersecurity firms are deploying it in the fightback. Lastly, we expect an AI-driven step forward in technology services. This includes the likes of consulting/advisory, third-party software development and business process optimization. FIGURE 1 Generative AI technology value stack SERVICES SOFTWARE & APPLICATIONS MODELS - & MLOps* INFRASTRUCTURE & PLATFORMS SILICON Foundation Verticalized On Device Vertical DB Hyperscalers Digital Infra Telcos Semiconductors Capital equipment Consumables Automation Augmentation Transformation Vertical Apps Horizontal Apps Vertically integrated Apps &Models * Machine Learning Operations © Citi Research 2023