Wealth Outlook 2024 - Slow then grow

81 Wealth Outlook 2024 | Unstoppable trends How generative AI might reshape every sector Consumer Consumer staples companies – such as food, beverages, household and personal products makers – are exploring and deploying AI tools across their operations. This could mean faster innovation and more efficient data use in manufacturing, supply chain and marketing activities. Enhanced sustainability by reducing waste and energy consumption is a further avenue. Traditional luxury is adapting more slowly, by contrast. Jewelry firms see potential in design and modeling but not yet in cutting and polishing. Consumer retail is exploring the use of generative AI for handling customer inquiries, finding in-store items and supply chain management. The fight against counterfeiting could also receive a boost, particularly in high-end spirits and cosmetics. Healthcare AI is likely to have profound impacts in drug discovery and design. It will also create advances in patient selection and recruitment for clinical trials and optimization of sampling/sales calls. Generative AI can also help in communicating with patients, such as reminding them about healthy habits as well as streamlining physician tasks including note taking/data input into digital health records. Improvements could also come in patient risk coding, payment integrity and ensuring that treatments are cost efficient and necessary. Adoption of this technology involves the establishment of systems to protect patient, doctor and hospital privacy, among other data concerns. Industrial tech and mobility Industrial processes are increasingly digitized. Internet- of-things (IoT) platforms are allowing end-users to create industry-specific and process-specific apps. Generative AI could significantly broaden the ability to create code, massively opening up the market for analyzing data on industrial IoT platforms. In autos & mobility, AI has many uses in autonomous vehicles and may drive product development, manufacturing and customer-facing services. Smarter decision making in defense systems could also emerge. Real estate The real estate sector is generally less exposed to generative AI than other sectors. At least for the first few years of the adoption cycle, data center demand is set to strengthen. AI could have a role to play in smart buildings, assisting in the automation of temperature, lighting, alarms, leak sensors and security. Chatbots could enhance consumer-facing applications at hotel and residential properties, meanwhile. Office space could receive a potential boost from AI company demand in the near term but may suffer in the event of mass AI job displacement further out. Natural resources and climate tech Workforce productivity gains from AI are initially less likely for this supersector, given its heavy industry skew and relative lack of customer-facing roles. However, opportunities may arise alongside the likes of greater electrification and interconnectivity, along with more smart appliances and more distributed energy (e.g., rooftop solar). AI may be used to analyze the resulting increase in data produced to manage demand and plant usage, leading to more efficient energy use. Less wastage is a risk of sorts for the industry as it results in lower demand. AI’s vast impact There appears to be no area of the economy that will be untouched by AI or the applications it may enable. Productivity is likely to be enhanced across many industries and embedding AI capabilities in existing processes, like software, will make its value readily apparent to users that used to rely on others to complete tasks.