The AI Revolution

by | Jun 7, 2024

The AI Revolution

It’s no secret that artificial intelligence (AI) has created a paradigm shift. AI has fundamentally shifted the way that many businesses are being run, it’s simplifying many jobs and tasks, and replacing others altogether.

It’s a textbook example of disruptive innovation and virtually all Fortune 500 companies have jumped on the AI trend.

Below are some charts showing the number of times several large companies have talked about AI on their earnings calls over the years:


Now this is extremely interesting because we went from virtually zero mentions to AI being a staple of the conversation in just a couple of short years.

This is because AI has become so popular. It’s rapidly becoming a staple of Americans’ everyday lives, especially in the business world. A recent study from Pew Research found that 55% of Americans regularly use AI.

Here’s a list from a Forbes Advisor survey showing what AI is being used for:

  • 56% are using AI to improve and perfect business operations
  • 51% are turning to AI to help with cybersecurity and fraud management
  • 47% harness AI tools in the form of digital personal assistants
  • 46% are using AI for customer relationship management
  • 40% are turning to AI for inventory management
  • 35% are leveraging AI for content production
  • 33% are using AI for product recommendations
  • 30% are turning to AI for accounting assistance and supply chain operations
  • 26% harness AI for recruitment and talent sourcing
  • 24% are using AI for audience segmentation

 The technology is also growing at an enormous rate, with many experts estimating a compound annual growth rate (CAGR) of 37.3% year over year.

This puts the global market size of AI at $407 billion by 2027.

 But here’s the thing:

Whether the AI revolution is real and whether or not it’s coming, and on the timeline that people predict really doesn’t matter at the end of the day.

AI has been one of the greatest catalysts the market has ever seen. It’s ushered in a fantastic bull run for the last year and a half.

The biggest impact on the market that AI has had is our perception of AI and all of the investment assumptions that have come with it.

Which have primarily been incredibly positive and have driven incredible upside across tech, utilities, and energy.

Whether the impacts of AI actually land like we expect, the idea of AI has injected a wealth of momentum and hype into the economy.

And this is a key lesson for us as investors. The hard numbers don’t always tell the story… In fact, they often don’t tell it at all. The assumptions and presumptions that guide our thinking are arguably the most important catalyst for any market.

We find ourselves in the most speculative market environment I’ve ever seen and AI is at the heart of it.

— Nate Tucci

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