Banks, insurance, manufacturing, media, and software. These are some of the sectors that, according to Moody’s AI Outlook 2024 , will be influenced more than others this year by the spread of artificial intelligence (AI).
Moody’s wrote: “AI innovation will develop rapidly in 2024, attracting more users and fostering a vibrant network of hardware suppliers and app developers.
“Risks will also increase as organizations begin to deploy large-scale AI applications for the first time.”
Moody’s analysts project a surge in expenditures on AI systems from $76 billion in 2023 to $521 billion by 2027. Growing allocation towards generative AI systems should fuel this boom. Allocation is expected to rise from 11% at $19 billion in 2023 to 29% at $151 billion in 2027.
Despite an anticipated boost in supplies, Moody’s forecasts a persistent shortage of advanced graphic processing units (GPUs) in the ongoing year, maintaining a trend observed in 2023. Key players in the chip manufacturing industry, such as Nvidia and AMD, are poised to maintain their prominence, with Nvidia gearing up to launch an even more potent GPU in 2024.
Moody’s envisions a ripple effect on the semiconductor and consumer electronics sector due to the widespread adoption of AI. In their hypothesis, the proliferation of AI could potentially benefit the entire industry.
Moody’s said: “With the total sales of PCs and smartphones expected to reach $750 billion in 2024, even a modest uptick in the integration of AI-enabled devices could substantially expand the potential market for smartphone and PC manufacturers.”
According to Moody’s forecasts, the spread of artificial intelligence until 2026 should have a limited impact. Over the next two years or so, the change should only affect software and semiconductor manufacturers. From 2026, however, the consequences could be more profound. Sectors such as the media, automotive, manufacturing, and the banking-insurance sector could also get involved.
Moody’s said: The banking sector is one of the non-tech sectors that will benefit the most, even if the gains will not be immediate. Over the next two to five years, as AI use cases develop, efficiency gains are likely to be substantial for this highly digitized and data-driven industry.”
But artificial intelligence will have a “disruptive” effect only in a few fields. Among these, according to Moody’s, are legal services and customer service. AI, the strategists explain, could produce summaries of documents and other text efficiently, making part of the tasks performed superfluous.
In the world of media, however, Moody’s believes that music is at greatest risk. Some AI models can (re)produce music and videos, and big players such as Meta and Google have already released tools of this type.