While we may still be in the early innings when it comes to artificial intelligence (AI) and generative AI (GenAI) development and usage, the main impacts have already shown increased productivity for both knowledge workers and consumers, as GenAI enhances tasks like web search, development, customer service, and advertising.

Analysts from William Blair’s technology, industrials, and energy sectors have created Navigating the Boom: Confronting Generative AI’s Most Pressing Questions, a comprehensive report covering topics from AI’s economic advantages to potential government regulations. The report aims to provide a roadmap for investors to assess the myriad opportunities—and risks—around AI and to identify companies and sectors that may not be getting the attention they deserve. Some of their key conclusions include:

  • Sizable GenAI-related capital expenditures are expected to persist through the end of the decade
  • Test-time compute represents the next frontier in AI scaling/intelligence
  • Physical power and energy infrastructure are the main AI bottlenecks, but natural gas may be best positioned for those energy demands
  • Broader and more scaled adoption of AI is expected in 2025, as businesses become more comfortable with new technology and tackle barriers to implementation
  • AI is an opportunity for IT services providers to evolve their offerings, focusing on advisory, implementation, and management of AI solutions

In our view, GenAI is ushering in a rapidly evolving world where the script is still being written, the sheer magnitude of infrastructure needs for AI buildout is still underappreciated, model intelligence is quickly advancing, and the use-cases are still early but progressing quickly. While we cannot predict the future, William Blair’s analysts will continue monitoring how GenAI functionality will alter how practitioners, investors, and consumers engage with technology.

For more information about our technology, media, and communications research, please contact us or your William Blair representative.

Listen to the William Blair Thinking Presents podcast episode: Navigating the Boom: Confronting GenAI’s Most Pressing Questions