Morgan Stanley-Thematics AI Adopters Are Adopting-106471392

MFebruary11,202410:00PMGMTFoundationThematicsEuropeMorganStanley&Co.Internationalplc++44207425-0840+44207425-9902AI:AdoptersAreAdoptingEdwardStanleyWehavearguedthat2024willbethe"YearoftheAdopters".EquityStrategistThemarketisstilltreatingthisthesisasa"showme"story;Edward.Stanley@morganstanley.comEnablersarestilldrivingreturns.Yet,beitConsumeror-moreimportantly-Enterpriseadoption,monthlydatapointswetrackMatiasOvrumsuggestAIadoptioniscontinuingatpace.EquityStrategist"OnceaninnovationdeliversacompetitiveadvantageeveryonemusteitherMatias.Ovrum@morganstanley.comadoptit,leapfrogit,switchfocusorlosemarketshareandeventuallygobust."MustafaSuleyman,Co-FounderofDeepMind.Exhibit2:RebasedforwardP/EofAdoptersandEnabler/Adoptersre-ratingYTDThiscommentneatlyencapsulatesthethinkingandurgencybehindourcallfor2024beingthe"YearoftheAdopter".Nooneindividualdatapointcananswerthe110questionofwhereweareinthisjourney,butbyjoiningvariousconsumerandenterprisedots,weareabletogaugedirectionoftravelandmomentum:108•Firstmoversarecausingdivergences:Thereareawideningarrayof106consumer-facingchatbots(ChatGPT,Bard/Gemini,Claude,Perplexityetc)andyetOpenAI'sleadwithconsumersremainscommanding...albeityettomake104newhighsaftertheChristmasbreak(Exhibit7).Developerspresentthebestcasestudyforearlyadoption.Theprospectof>50%productivitygains102isdriving...