In a rapidly evolving world of technology, artificial intelligence (AI) has taken center stage. Morgan Stanley’s report titled “15 Ways to Play AI” sheds light on the future of AI and how it may revolutionize our everyday lives. While the current dominance of AI is through cloud computing, the next stage will see the rise of Edge AI, bringing computation power directly to our pockets and purses through mobile devices.
Edge AI refers to the processing of computations locally, within the user’s device or laptop, as opposed to relying on remote data centers. According to Morgan Stanley, Edge AI is expected to show the highest profit growth by 2024. Surprisingly, the stocks of companies associated with Edge AI are relatively undervalued compared to other AI-related companies in the market.
The report suggests that the proliferation of mobile AI will be accelerated by an upturn in the smartphone sales cycle. Manufacturers are partnering with AI developers to provide new mobile functionality, such as enhanced photography, desktop-level gaming, and AI virtual companions. Increasing smartphone memory will also drive earnings growth for memory manufacturers.
Morgan Stanley has identified several companies as primary beneficiaries of the Edge AI growth. These include SK Hynix for memory, MediaTek for System on a Chip (SoC), Qualcomm for SoC, and Samsung Electro-Mechanics for smartphone supply chain. Other companies such as Will Semi, Goodix, Apple, Xiaomi, Transsion, Lenovo, and Asustek are also expected to thrive in this new era of Edge AI.
But what does this mean for everyday users? The integration of AI in our daily lives is becoming more prevalent. Many individuals, like market strategist Scott Barlow, are already utilizing AI options for various tasks. From quick searches to summarizing extensive research reports, AI applications like Microsoft’s Copilot provide immediate and accurate assistance. As developers continue to innovate, the possibilities for AI on mobile devices seem endless.
FAQ:
Q: What is Edge AI?
A: Edge AI refers to the processing of AI computations locally, within the user’s device or laptop, as opposed to relying on remote data centers.
Q: Which companies are expected to benefit from the growth of Edge AI?
A: Morgan Stanley has identified companies such as SK Hynix, MediaTek, Qualcomm, Samsung Electro-Mechanics, Will Semi, Goodix, Apple, Xiaomi, Transsion, Lenovo, and Asustek as primary beneficiaries of the Edge AI growth.
Q: How will Edge AI impact mobile devices?
A: Edge AI will bring new features to mobile devices, including enhanced photography, desktop-level gaming, AI virtual companions, and stable diffusion, allowing the creation of images from textual descriptions.
Sources:
– Morgan Stanley’s 15 Ways to Play AI report: [URL]
– Globe and Mail market strategist Scott Barlow: [URL]
– Microsoft’s Copilot app: [URL]
In addition to the information provided in the article, let’s expand on the industry, market forecasts, and issues related to the Edge AI industry:
The Edge AI industry is a rapidly growing sector within the larger artificial intelligence landscape. The integration of AI directly into mobile devices and laptops opens up new possibilities for users and presents opportunities for companies in the market. According to market research, the Edge AI market size is expected to reach $1.12 billion by 2023, growing at a compound annual growth rate (CAGR) of 11.9% from 2018 to 2023.
One of the key drivers of the Edge AI market is the increasing demand for real-time processing and low latency applications. With Edge AI, tasks that require instant processing, such as voice recognition, image processing, and natural language processing, can be carried out locally on the device, eliminating the need for data to be sent to remote servers. This reduces latency and improves the overall user experience.
Another factor contributing to the growth of the Edge AI market is the proliferation of Internet of Things (IoT) devices. IoT devices generate massive amounts of data that need to be processed and analyzed in real-time, often at the edge of networks. Edge AI enables efficient data processing and analysis on these devices, enhancing the functionality and intelligence of IoT systems.
However, the industry also faces certain challenges. One of the primary concerns is privacy and data security. With Edge AI processing data locally, there is a need to ensure that sensitive user data is protected and not at risk of being compromised. Companies in the industry need to invest in robust security measures to address these concerns and build trust among users.
Furthermore, as Edge AI evolves, there will be a need for standardization and interoperability. Currently, different devices and platforms may use different Edge AI frameworks and protocols, making it challenging for developers to create applications that work seamlessly across multiple devices. The industry will benefit from the development of common standards, allowing for easier integration and interoperability.
To further explore the industry, you can visit the following links:
– Morgan Stanley’s 15 Ways to Play AI report: This report provides insights into the future of AI and its impact on various sectors, including Edge AI.
– Globe and Mail market strategist Scott Barlow: Scott Barlow provides analysis and commentary on the AI industry, including potential investment opportunities.
– Microsoft’s Copilot app: Explore Copilot, an AI application developed by Microsoft that assists users in various tasks, giving a glimpse into the potential of AI on mobile devices.
Keep in mind that technology and market trends are constantly evolving, and it is advisable to stay updated with the latest news and reports in the industry.