Career
Menu

Two-Minute Tech

Company mentions of artificial intelligence and related topics on quarterly earnings calls has inflected following the public release of OpenAI’s ChatGPT large language model at the end of 2022.

Key takeaways
  • A massive increase in mentions of Artificial Intelligence (AI) and related topics on quarterly earnings calls since the public release of OpenAI’s ChatGPT large language model at the end of 2022 reflects the fast-paced advancement of Generative AI systems and their growing cross-sector relevance
  • While, thus far, companies driving the AI conversation are well-established technology leaders, it is expected to steadily expand also among non-tech industries
  • Longer term, the conversation around AI is expected to continue at an elevated level with management teams providing more details regarding their plans to integrate AI in their operations and launching new AI-enabled products

 

Merits a mention: AI conversation at an inflection point
Company mentions of artificial intelligence and related topics on quarterly earnings calls has inflected following the public release of OpenAI’s ChatGPT large language model at the end of 2022. Through the three months ended 30 June 2023, which include the calendar first quarter earnings release period, total company mentions of AI-related topics increased nearly 2.5x from the five-year average.

 

 
Who is talking about AI and what are they saying?

Understandably, the companies driving the conversation are well-established technology leaders the likes of NVIDIA, Microsoft, and Adobe. These companies’ management teams have made bold pronouncements and predictions related to the impact of AI advancements on their businesses and society:

“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process” – Jensen Huang, NVIDIA CEO 1

"Next generation of AI will unlock a new wave of productivity growth, with powerful copilots designed to remove the drudgery from our daily tasks and jobs, freeing us to rediscover the joy of creation” – Satya Nadella, Microsoft CEO 2

“Generative AI in the creative space is going to augment human ingenuity…the winning companies are those who recognize that there’s a complete workflow associated with it” – Shantanu Narayen, Adobe CEO 3

 Thus far, technology companies have been more vocal regarding their views on the latest in AI developments with mentions on quarterly conference calls increasing 3.2x from the five-year average. Meanwhile, non-technology companies have also increased their mentions of AI though not at the same level as their tech counterparts.

 

We expect the AI conversation to steadily expand among non-tech industries as these companies explore and adopt the latest developments in the space, particularly those around Generative AI. Executives from sector leaders such as JPMorgan and Eli Lilly have articulated their views on how Generative AI and other AI technologies could impact their respective industries.

“AI is real. This is a technology which is staggering…we’re already using them to do risk, fraud, marketing, prospecting and it’s the tip of the iceberg.” – Jamie Dimon, JPMorgan CEO4

“We’re using generative AI to help our scientists identify new molecules that could lead to new medicines…discovering different ideas than typically appear to the human mind” – Dave Ricks, Eli Lilly CEO5

 
What’s next in the AI discussion?

We expect the conversation around AI to continue at an elevated level and we look for management teams to provide more details regarding their activities in that space. We anticipate companies will highlight their plans to integrate AI in their operations as well as launching new AI-enabled products.

For instance, Microsoft will soon expand the availability of their Generative AI-enabled 365 Copilot which automates activities in the Office 365 suite. We believe the 365 Copilot will be the first of many such products launched with the potential to accelerate growth and productivity across sectors.

Longer-term, we expect investments by non-technology companies in the latest AI tools such as large-language models and Generative AI to yield significant productivity enhancements. The breadth of applicability and transformational potential will necessitate coordination between private and public entities to ensure the safety and reliability of these new tools, in our view.

1NVIDIA Q1 2024 Financial Results Press Release
2Microsoft: Reinventing productivity with AI
3Stanford GSB View from the Top: Generative AI Won’t Replace Human Ingenuity
4Bloomberg on YouTube 3/9/2023
5LinkedIn Post by Dave Ricks on 3/21/2023

Recent insights

Layers of contemporary financial skyscrapers in Central Business District, Hong Kong

Navigating Rates

Fixed Income Forward: October 2024

With the potential for more frontloading of interest rate cuts by the European Central Bank, we see the possibility of further yield curve steepening, primarily from the more policy-anchored front end. In outright duration risk, we prefer to stay more tactical on US Treasuries.

Discover more
by Michael Krautzberger , Georgios Georgiou | 11/11/2024
An American flag hangs outside a tall gray stone building with large windows.

Navigating Rates

Donald Trump poised for White House return

With all signs pointing to a Donald Trump win, we expect many of his populist policies to cause ripples, even though markets were largely priced for this outcome. How might investors navigate the election result?

DISCOVER MORE
by Gregor Hirt , Michael Krautzberger , Virginie Maisonneuve | 06/11/2024
US elections monitor: policy impact

Navigating Rates

US elections monitor: policy impact

All eyes will be on the US elections in November – but the implications for markets could be quite different depending on who wins.

Discover more

by Greg Meier | 21/10/2024

  • Disclaimer
    Any securities mentioned (above) is for illustrative purposes only. It should not be considered as an investment advice, or a recommendation to buy or sell any particular security or strategy.

    Information herein is based on sources we believe to be accurate and reliable as at the date it was made. We reserve the right to revise any information herein at any time without notice. No offer or solicitation to buy or sell securities and no investment advice or recommendation is made herein. In making investment decisions, investors should not rely solely on this material but should seek independent professional advice

    Investment involves risks, in particular, risks associated with investment in emerging and less developed markets. Past performance, or any prediction, projection or forecast, is not indicative of future performance. This material and website have not been reviewed by the Securities and Futures Commission of Hong Kong. Issued by Allianz Global Investors Asia Pacific Limited.

    3119003

Allianz Global Investors

You are leaving this website and being re-directed to the below website. This does not imply any approval or endorsement of the information by Allianz Global Investors Asia Pacific Limited contained in the redirected website nor does Allianz Global Investors Asia Pacific Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contain funds and strategies not authorized for offering to the public in your jurisdiction. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.

Welcome to Allianz Global Investors

Select your language
  • 中文(繁體)
  • English
Select your role
  • Individual Investor
  • Intermediaries
  • Other Investors
  • Pension Investors

  • Allianz Global Investors Fund (“AGIF”)

    • Allianz Global Investors Fund (“AGIF”) as an umbrella fund under the UCITS regulations has within it different sub-funds investing in fixed income securities, equities, and derivative instruments, each with a different investment objective and/or risk profile.

    • All sub-funds (“Sub-Funds”) may invest in financial derivative instruments (“FDI”) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks. A Sub-Fund’s net derivative exposure may be up to 50% of its NAV. 

    • Some Sub-Funds as part of their investments may invest in any one or a combination of the instruments such as fixed income securities, emerging market securities, and/or mortgage-backed securities, asset-backed securities, property-backed securities (especially REITs) and/or structured products and/or FDI, exposing to various potential risks (including leverage, counterparty, liquidity, valuation, volatility, market, fluctuations in the value of and the rental income received in respect of the underlying property, and over the counter transaction risks). 

    • Some Sub-Funds may invest in single countries or industry sectors (in particular small/mid cap companies) which may reduce risk diversification. Some Sub-Funds are exposed to significant risks which include investment/general market, country and region, emerging market (such as Mainland China), creditworthiness/credit rating/downgrading, default, asset allocation, interest rate, volatility and liquidity, counterparty, sovereign debt, valuation, credit rating agency, company-specific, currency  (in particular RMB), RMB debt securities and Mainland China tax risks. 

    • Some Sub-Funds may invest in convertible bonds, high-yield, non-investment grade investments and unrated securities that may subject to higher risks (include volatility, loss of principal and interest, creditworthiness and downgrading, default, interest rate, general market and liquidity risks) and therefore may adversely impact the net asset value of the Sub-Funds. Convertibles will be exposed prepayment risk, equity movement and greater volatility than straight bond investments.

    • Some Sub-Funds may invest a significant portion of the assets in interest-bearing securities issued or guaranteed by a non-investment grade sovereign issuer (e.g. Philippines) and is subject to higher risks of liquidity, credit, concentration and default of the sovereign issuer as well as greater volatility and higher risk profile that may result in significant losses to the investors. 

    • Some Sub-Funds may invest in European countries. The economic and financial difficulties in Europe may get worse and adversely affect the Sub-Funds (such as increased volatility, liquidity and currency risks associated with investments in Europe).

    • Some Sub-Funds may invest in the China A-Shares market, China B-Shares market and/or debt securities directly  via the Stock Connect or the China Interbank Bond Market or Bond Connect and or other foreign access regimes and/or other permitted means and/or indirectly through all eligible instruments the qualified foreign institutional investor program regime and thus is subject to the associated risks (including quota limitations, change in rule and regulations, repatriation of the Fund’s monies, trade restrictions, clearing and settlement, China market volatility and uncertainty, China market volatility and uncertainty, potential clearing and/or settlement difficulties and, change in economic, social and political policy in the PRC and taxation Mainland China tax risks).  Investing in RMB share classes is also exposed to RMB currency risks and adverse impact on the share classes due to currency depreciation.

    • Some Sub-Funds may adopt the following strategies, Sustainable and Responsible Investment Strategy, SDG-Aligned Strategy, Sustainability Key Performance Indicator Strategy (Relative), Green Bond Strategy, Multi Asset Sustainable Strategy, Sustainability Key Performance Indicator Strategy (Absolute Threshold), Environment, Social and Governance (“ESG”) Score Strategy, and Sustainability Key Performance Indicator Strategy (Absolute). The Sub-Funds may be exposed to sustainable investment risks relating to the strategies (such as foregoing opportunities to buy certain securities when it might otherwise be advantageous to do so, selling securities when it might be disadvantageous to do so, and/or relying on information and data from third party ESG research data providers and internal analyses which may be subjective, incomplete, inaccurate or unavailable and/or reducing risk diversifications compared to broadly based funds) which may result in the Sub-Fund being more volatile and have adverse impact on the performance of the Sub-Fund and consequently adversely affect an investor’s investment in the Sub-Fund. Also, some Sub-Funds may be particularly focusing on the GHG efficiency of the investee companies rather than their financial performance which may have an adverse impact on the Fund’s performance.

    • Some Sub-Funds may invest in share class with fixed distribution percentage (Class AMf). Investors should note that fixed distribution percentage is not guaranteed. The share class is not an alternative to fixed interest paying investment. The percentage of distributions paid by these share classes is unrelated to expected or past income or returns of these share classes or the Sub-Funds. Distribution will continue even the Sub-Fund has negative returns and may adversely impact the net asset value of the Sub-Fund.  Positive distribution yield does not imply positive return.

    • Investment involves risks that could result in loss of part or entire amount of investors’ investment.

    • In making investment decisions, investors should not rely solely on this [website/material].

    Note: Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Sub-Fund’s capital or effectively out of the Sub-Fund’s capital which represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease in the NAV per share and the capital of the Sub-Fund available for investment in the future and capital growth may be reduced, in particular for hedged share classes for which the distribution amount and NAV of any hedged share classes (HSC) may be adversely affected by differences in the interests rates of the reference currency of the HSC and the base currency of the respective Sub-Fund. Dividend payments are applicable for Class A/AM/AMg/AMi/AMgi/AQ Dis (Annually/Monthly/Quarterly distribution) and for reference only but not guaranteed.  Positive distribution yield does not imply positive return. For details, please refer to the Sub-Fund’s distribution policy disclosed in the offering documents.

     


    Allianz Global Investors Asia Fund

    • Allianz Global Investors Asia Fund (the “Trust”) is an umbrella unit trust constituted under the laws of Hong Kong pursuant to the Trust Deed. Allianz Thematic Income and Allianz Selection Income and Growth and Allianz Yield Plus Fund are the sub-funds of the Trust (each a “Sub-Fund”) investing in fixed income securities, equities and derivative instrument, each with a different investment objective and/or risk profile.

    • Some Sub-Funds are exposed to significant risks which include investment/general market, company-specific, emerging market, creditworthiness/credit rating/downgrading, default, volatility and liquidity, valuation, sovereign debt, thematic concentration, thematic-based investment strategy, counterparty, interest rate changes, country and region, asset allocation risks and currency (such as exchange controls, in particular RMB), and the adverse impact on RMB share classes due to currency depreciation.  

    • Some Sub-Funds may invest in other underlying collective schemes and exchange traded funds. Investing in exchange traded funds may expose to additional risks such as passive investment, tracking error, underlying index, trading and termination. While investing in other underlying collective schemes (“CIS”) may subject to the risks associated to such CIS. 

    • Some Sub-Funds may invest in high-yield (non-investment grade and unrated) investments and/or convertible bonds which may subject to higher risks, such as volatility, creditworthiness, default, interest rate changes, general market and liquidity risks and therefore may  adversely impact the net asset value of the Fund. Convertibles may also expose to risks such as prepayment, equity movement, and greater volatility than straight bond investments.

    • All Sub-Funds may invest in financial derivative instruments (“FDI”) which may expose to higher leverage, counterparty, liquidity, valuation, volatility, market and over the counter transaction risks.  The use of derivatives may result in losses to the Sub-Funds which are greater than the amount originally invested. A Sub-Fund’s net derivative exposure may be up to 50% of its NAV.

    • These investments may involve risks that could result in loss of part or entire amount of investors’ investment.

    • In making investment decisions, investors should not rely solely on this website.

    Note: Dividend payments may, at the sole discretion of the Investment Manager, be made out of the Sub-Fund’s income and/or capital which in the latter case represents a return or withdrawal of part of the amount investors originally invested and/or capital gains attributable to the original investment. This may result in an immediate decrease in the NAV per distribution unit and the capital of the Sub-Fund available for investment in the future and capital growth may be reduced, in particular for hedged share classes for which the distribution amount and NAV of any hedged share classes (HSC) may be adversely affected by differences in the interests rates of the reference currency of the HSC and the base currency of the Sub-Fund. Dividend payments are applicable for Class A/AM/AMg/AMi/AMgi Dis (Annually/Monthly distribution) and for reference only but not guaranteed.  Positive distribution yield does not imply positive return. For details, please refer to the Sub-Fund’s distribution policy disclosed in the offering documents.

     

Please indicate you have read and understood the Important Notice.