AI: From Buzzword to Industry Standard
By Harrison Spalthoff ’26 Associate
Artificial Intelligence (AI) has recently surfaced as a driving force for innovation in the global market, kickstarting a race in which everyone is trying to be the leader in AI. While AI is currently viewed as a new and exciting term, it will soon become a standard tool across every industry within the next few years. In March 2024, Saudi Arabia announced their plan to invest over $40 billion towards AI development, with funding coming from its sovereign wealth fund and a partnership with Andreessen Horowitz. In a similar move back in 2022, the United States passed the CHIPS Act which approved more than $39 billion in subsidies to create domestic semiconductor production- a move seen by US Commerce Secretary Gina Raimondo as critical for the US to be at the forefront of the AI revolution.
The surging demand for AI has caused valuations for major tech companies to soar. AI Chipmaker Nvidia, has seen its market cap increase by over 40% this year, reaching $1.7 trillion. The company also reported tremendous growth, with its 2023 fourth quarter revenue tripling from the previous year to $22.1 billion and profit soaring nearly ninefold to $12.3 billion. In a recent interview Nvidia’s CEO, Jensen Huang said that “accelerated computing and generative AI have reached a pivotal moment,” with demand skyrocketing worldwide among companies, industries, and nations as they race to incorporate AI tool in their workflow. At the startup level, companies are securing substantial funding to develop advanced AI; Anthropic PBC has raised over $7 billion in a single year, while OpenAI has gathered $11.3 billion to date.
The Financial Services Industry has been one of the first industries to undergo notable change merging with their AI initiatives. JP Morgan, a major leader in this space, has recently hired over 150 data scientists to develop and refine their AI capabilities. Their Cash Flow Intelligence software gives clients on-demand insights for cash-flow analysis and has cut 90% of manual work at the bank. CEO Jamie Dimon believes that AI is “critical” to future success at JPMorgan, and the bank aims to generate over $1 billion in revenue from their AI software enhancements in the coming years, foreshadowing the widespread adoption of AI.
Morgan Stanley is another company investing heavily in AI integration. The bank recently announced its new Morgan Stanley Assistant which is powered by OpenAI’s GPT-4 large language model (LLM). The tool gives financial advisors quick access to the bank’s database of over 100,000 research reports and intellectual capital. This AI assistant aims to bring efficiency to advisors and free up their time to focus more on their clients’ needs — further showing how AI will enhance human capabilities across sectors.
In asset management, Bridgewater Associates is rolling out an AI-driven investment fund by integrating machine learning across its strategy. Similarly, Balyasny is developing artificial analysts to automate data analytic tasks that are currently performed by humans.
While the implementation of AI is not without its challenges, and it will certainly phase out some roles, its development will also unlock limitless opportunities. By offloading monotonous tasks like data analysis and validation to AI systems, professionals can concentrate on tasks that require critical thinking and human creativity. The shift towards an AI-enhanced workplace is not one where humans will be completely replaced but rather a work environment where AI is used as a tool to create a more productive and streamlined work environment. As evidenced by the significant investments and adoption occurring worldwide, AI enhancements will soon become the industry standard across in the next few years.
Harrison is a sophomore from Goffstown, NH, pursuing a degree in Business Administration with a concentration in Finance. On campus, Harrison is an RA in Peterson Hall and is actively involved in several clubs and extracurricular activities. Last summer, Harrison participated in a Sales Internship at Critical Process Filtration and a Finance/R&D Internship at CH Biomedical, which ignited his interest in the biotechnology industry.
