Morgan Stanley-Thematics Mapping AIs Diffusion Chartbook-105782683

January7,202406:00PMGMTMorganStanleyMappingAI’sDiffusionEdwardStanleyEquityStrategistMorganStanley&Co.Internationalplc+MorganStanleydoesandseekstodobusinesswithcompaniescoveredinMorganStanleyResearch.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofMorganStanleyResearch.InvestorsshouldconsiderMorganStanleyResearchasonlyasinglefactorinmakingtheirinvestmentdecision.Foranalystcertificationandotherimportantdisclosures,refertotheDisclosureSection.Analystsemployedbynon-U.S.affiliatesarenotregisteredwithFINRA,maynotbeassociatedpersonsofthememberandmaynotbesubjecttoFINRArestrictionsoncommunicationswithasubjectcompany,publicappearancesandtradingsecuritiesheldbyaresearchanalystaccount.​AllinformationasofJanuary2nd2024ExecutiveSummary•AIhasestablisheditselfasacriticaltheme,butweareintheearlyinningsofitsdiffusion.2024istheyearoftheAdopters.Thistechshiftisprogressingfasterthananybeforeit.Companiesthatbestadoptnewtechnologytoscaletheirbusinesseswhilemaintainingrobustbarrierstoentryaccruemostvalue.1.2024–theyearoftheAdopters:TheEnablersgained>$6tnofmarketcapin2023.Ouranalystsseelessupsideforthesenamesnearterm.In‘24,wearguethatinvestorsfocusontheAdopters,agroupthatroseonlyc6%in‘23.IfAdoptercompaniesweretoleverupto2xEBITDAforAIinvestments,theycouldspend>$3tn.Adoptershol...