A (3:47)

Interesting. So interns continue to invest in tech ecosystems with more than 90% owning multiple devices. What does this interconnectedness mean for companies in your space?

B (3:59)

This somewhat connects to the fragmentation theme I mentioned, where I think digital shopping has somewhat functioned as a great equalizer in the space and big picture. I interpret device reliance as a leading indicator that this market diversification likely continues as brands fight to capture mobile mindshare. The second read I'd have on this development is that it means brands must evolve to have an omnichannel presence. So that's both in store and online, and preferably one that's experiential focused such that this generation can create content around it. That's really the holy grail. And then maybe lastly, the third takeaway on this is that it's going to come at a cost you can't keep eyeballs without spend and historical brick and mortar retailers spend maybe 5 to 10% of sales on marketing, with digital requiring more than physical. So now I think what's interesting is that brands in my space with momentum seem to have to spend more than 10% of sales on marketing just to maintain popularity. So that's a cost pressure. We're not sure where these businesses will necessarily recoup if all of them end up getting the joke and continuing to invest just to drive mind share Adam Turning to a topic that's been very hot this year in your area of expertise. That's humanoid robots. Interns were optimistic here, with more than 60% believing they'll have many viable use cases and about the same number thinking they'll replace many human jobs, yet fewer expect wide scale adoption within five years. What do you think explains this cautious enthusiasm?

A (5:27)

Well, actually, Alex, I think it's pretty smart. There is room to be optimistic, but there's definitely room to be cautious in terms of the scale of adoption, particularly over five years. I mean, we're talking about humanoid robots. We're talking about a new species that's being created, right? This is, this is bigger than just will it replace our job? I mean, I don't think it's an exaggeration to ask what does this do to the concept of being human? You know, how does this affect our children and future generations? This is major generational planetary technology that I think is very much comparable to electricity, the Internet, some people say the wheel fire, I don't know. We're going to see it happen and start to propagate over the next few years where even if we don't have widespread adoption in terms of dealing with it, on an average hour of a day or an average day throughout the planet, you're going to see the technology go from zero to one as these machines learn by watching human behavior, going from teleoperated instruction to then fully autonomous instruction as the simulation stack and the compute gets more and more advanced. We're now seeing, some industry leaders say that robots are able to learn by way of watching videos. And so this is all happening right now and it's happening at the pace of geopolitical rivalry, Sino US Rivalry and Terra Cap, you know, big, big corporate competitive rivalry as well for capital and the human brain. So we are entering an unprecedented, maybe precedented in the last century, perhaps unprecedented era of technological and scientific discovery that I think you got to go back to the European and American enlightenment or the Italian Renaissance to have any real comparisons to what we're about to see.

B (7:13)

So keeping with this same theme, interns showed strong interest in household robots, with 61% expressing some interest and 24% saying they're very or extremely interested. I'm going to take you back to your prior coverage here, Adam. Could this translate into demand for AI driven mobility or smart infrastructure?

A (7:32)

Well, Alex, you were part of my prior coverage once upon a time. We were blessed with having you on our team for a year. And then you left me my golden era. But then you came back, you came back and you've done pretty well. So look, imagine it's 1903, the Wright Brothers just achieved first flight over the sands in Kitty Hawk. And then I were to tell you, oh, yeah, in a few years we're gonna have these planes used in World War I. And then in 1914 we'd have the first airline going between Tampa and St. Petersburg. You'd say, you're crazy, right? The beauty of the intern survey is it gives the Morgan Stanley research department and our clients an opportunity to engage that surface area with that arising, not just the business leader, but that arising tech adopter. These are the people, these are the men and women that are going to kind of really adopt this much, much faster. And then, you know, our generation will get dragged into it eventually. So I think it says, I think 61% expressing even some interest and then 24, I guess, you know, the vast majority, three quarters saying, yeah, this is happening. That's a sign, I think, to our clients and capital market providers and regulators to say this won't be stopped and if we don't do it, someone else will.

B (8:48)

So another topic, generative AI. It should come as no surprise really that 95% of interns use that tool monthly, far ahead of the general population. How do you see this shaping future expectations for mobility and automation?

A (9:03)

So this is what's interesting is people have asked kind of, what's that Gen AI moment, if you will, for mobility? Well, it really is Gen AI large language models and the technologies that develop the large language models and that recursive learning don't just affect the knowledge economy or writing or research report generation or intelligent search. It actually also turns video clips and physical information into tokens that can then create and take what would be a normal suburban city street in beautiful weather with smiling faces or whatever, and turn it into a chaotic scene of, you know, traffic and weather and, and all sorts of infrastructure issues and potholes. And that can be done in this digital twin in an omniverse. A CEO recently told me, when you drive a car with advanced level 2 plus autonomy, like full self driving, you're not just driving in three dimensional space, you're also playing a video game, training a robot in a digital avatar. So again, I think that there is quite a lot of overlap between Gen AI and the fact that our interns are so much further down that curve of adoption than the broader public is probably a hint to us, is we got to keep listening to them when we move into the physical realm of AI too.

B (10:26)

So no more driving tests. For the 16 year olds of the.

A (10:29)

Future if you want to. I tell my kids, if you want to drive, that's cool. Manual transmission, Italian sports cars. That's great. People still ride horses too, but it's just for that privileged few that can kind of keep these things in stables.

B (10:44)

So let me turn this into implications for companies here. Gen Z Is tech fluent open to disruption? How should autos and shared mobility providers rethink their engagement strategies with this generation?

A (10:57)

Well, that's, that's a huge question. And think of the, the irony here. As we bring in this world of fake humans and humanoid robots, the scarcest resource is the human brain, right? So this battle for the human mind is, it's incredible. And we haven't seen this really since like the Sputnik era or real height of the Cold War. We're seeing it now play out and our clients can read about some of these signing bonuses for this top AI and robotics talent being paid by many companies. It kind of makes your eyes water, even if you're used to the world of sports and soccer. I think we're going to keep seeing more of that for the next few years because we need more brains, we need more stem. I think it's going to do. It has the potential to do a lot for our education system in the United States and in the west broadly.

B (11:47)

So we've covered a lot around what the next generation is interested in and their opinion. I know we do this every year, so it'll be exciting to see how this evolves over time and how they adapt. It's been great speaking with you today, Adam.

A (11:59)

Absolutely, Alex. Thanks for your insights and to our listeners, stay curious, stay disruptive, and we'll catch you next time. If you enjoy thoughts on the market, please leave us. A Review Wherever you listen and share the podcast with a friend or colleague.

C (12:14)

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