Morgan Stanley, in collaboration with AI-powered market intelligence and research platform AlphaSense, held a webinar on Wednesday to discuss the misconceptions surrounding AI versus software, as well as the path to growth for both sectors.
Keith Weiss, an equity analyst at Morgan Stanley, believes that the idea that AI is going to displace software is a “definitional error.”
Weiss emphasized that AI is not a separate category from software, but rather an extension of its capabilities. He added that, unlike previous categorical shifts in the software industry, such as the pivot from on-premise to cloud-based solutions, AI does not replace existing software systems. Instead, it enhances them by expanding their functionalities, he explained.
On the other hand, generative AI, specifically diffusion engines, is impacting certain areas of the software industry, he noted.
Adobe stated in its Q1 report that its photography business is starting to see impacts from generative AI, as customers are moving away from purchasing pre-shot stock photography in favor of generating their own images using AI. This is one of the few instances where generative AI might act …
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