Artificial Intelligence: What’s Your Thesis?

Artificial Intelligence (AI) is taking shape as one of the most enduring market memes—stories that people are buzzing about that have financial decision-making implications—we have seen in quite some time. Your ability to develop and deliver your AI thesis can significantly impact your success in various dimensions of conversation:

• Making first encounters count
• Generating more meetings
• Answering “Why us, now?”
• Capturing referable moments

In February of this year, Andrew Slimmon, head of Applied Equity Advisors, provided us with his intriguing AI thesis: “We may be entering 1997,” suggesting the strong parallels to the mid-1990s when the internet gained widespread popularity.

We caught up with Andrew to get an update on his thinking. Below are some excerpts from our conversation:

David: Do you stand by your thesis from earlier this year, Andrew?

Andrew: Absolutely. In fact, I am doubling down on my thesis, “We may be entering 1997.” I am even more of a believer in the future of AI and how it’s likely to affect investing. We’re just on the cusp of these transformations, and most investors haven’t caught on to the magnitude of what’s coming.

David: I am usually a believer in the power of the markets. What is keeping investors from seeing what you see?

Andrew: Look at our news cycle. There’s a lot of noise which is distracting many from the bigger story of corporate earnings. Earnings are red hot. I see this as something that will continue.

David: You seem very confident on this point.

Andrew: I am. Think about it, what are companies good at doing? Cutting costs. There’s been a rapid embrace of AI because it helps corporations do just that. And this will further companies’ abilities to drive earnings.

David: What’s your view on the impact of AI on jobs in the future?

Andrew: Technology doesn’t replace labor; it makes labor more productive. While there might be a pause in job growth, this is no different than other technological advancements of the past. It’s easy to focus on the job losses, rather than imagine the magnitude of the new jobs that are likely to be created as AI becomes more and more mainstream.

Bottom Line: Create a curiosity gap in all dimensions of conversation with a well-articulated thesis to help drive organic growth in the months ahead.