E83: AI's Mid-Year Review: The Token Bottleneck
KEY TAKEAWAYS
- AI innovation is fundamentally reshaping global economics driving accelerated adoption and significant market performance shifts across diverse industries
- Businesses are strategically leveraging AI for revenue growth and market expansion moving beyond mere cost savings to maximize creative application
- Critical AI deployment factors include rising output token costs persistent infrastructure constraints and evolving cybersecurity and regulatory challenges
Rob Rowe and Heath Terry offer a mid-year review of AI, ranging from the accelerating pace of adoption and how companies are leveraging AI to regulatory issues and infrastructure challenges such as the much-discussed token bottleneck.
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Robert Rowe, Global Head of Research, Citi
Rob Rowe is the Head of Citi Research’s Global Strategy & Macro Group (GSMG) as well as the Global Head of Citi Research. GSMG unites all of Citi’s Economists with Fixed Income, FX, Equity and Commodities strategists to create a common team providing research on the world’s major economies and asset classes. Rob has been with Citi for 35 years in various capacities. He originally joined Smith Barney, Harris Upham & Company in 1989 working in investment banking, fixed income sales, and research. In addition to his overall responsibilities, he continues to provide portfolio strategy for select clients as part of his previous role overseeing the Global Bond Portfolio Analysis team. Rob is a graduate of Hartwick College with a BA in European History and the Theatre. He is also a graduate of the American Academy of Dramatic Arts.
Heath Terry, Head of Technology & Communications Research
Heath Terry is the Global Sector Head for Technology & Communications Research at Citi Research. Prior to joining Citi in May 2025, Heath led the centralized research effort in TMT for Balyasny Asset Management and was a Managing Director at Third Point Ventures, leading its growth stage venture capital practice. Prior to that Heath worked for more than 20 years in equity research, most recently as the head of Goldman Sachs’ Global Investment Research’s Technology, Media and Telecom Group. While at Goldman Sachs Heath led research's working group on Artificial Intelligence and created the firm’s venture capital research practice. He is a Trustee for the Southern Environmental Law Center and Vice Chairman of The University of Alabama President’s Cabinet.
