>> from bloomberg's world headquarters in new york, i am caroline hyde. >> i am romaine bostick. >> in just a few hours, elon musk and tesla analysts expect this to send on ai applications and advanced manufacturing. fans are discussing how ai will change the supply chain.

how we work, how wall street operates. first, we will start with tesla's day. >> it will be a big day. let's take a look at what to expect. we will get both hardware and software. the only thing i want to know about is the top and bottom line going forward. what this means for the company. why don't we break it all down? ed ludlow is doing this. what are the key elements you're looking for? ed: elon musk says it really will focus around autonomous driving. there has been this mission from elon musk recently that the last 1% of getting over the line is breaking down artificial intelligence. we know it is a priority to

tesla to hire in that area. they are seeking the best of the best of silicon valley. there are hints that this might involve some prior terry designed around semiconductors. >> what is the general feeling about this? is this the developers day that we get out of apple and facebook? who is the audience? >> on battery day or when they had this event, the tesla fan and owner that elon engages with on twitter. we know that less of those people are invited and there are some quite notable academics from the world of engineering and computing that have been invited. we know that talent is front and center for this. tessa wants to hire in those roles specifically. we are assuming there will be some players in that industry as

well. >> a lot of these days don't live up to the hype always. >> tesla is not alone in trying to crack full autonomy. fighting fiercely hard, they are competing against people like apple, google who are also paying. even from wall street. elon musk's other great skill is keeping investors looking to the horizon. was it april of 19 where he said when you're from now we will have one million robo taxis -- was it april of 2019 when he

said when year from now we will have a million robo taxis on the streets? courts gordon johnson and the ceo and founder joining us right now. he was recently ranked by bloomberg. a lot of experience. i know you have been following tesla for quite some time. we are making a big deal out of this. just give us a lube bit of a sense as to hear out of ai day. >> what we need to consider is why we should believe anything said on ai day given every other there was either defined by fabrication or something close to that. let's look at what happened with ai day. battery day is the most recent. that cell structure was supposed to basically enable a 500 mile

flat. we know right when the car was supposed to come out, they canceled. in addition to battery day, they said they were going to put the battery in the cyber truck. now they have delayed the cyber truck again. a bunch of promises made not cap. elon must promise level five autonomy. they promised to have a million robo taxis on the road by 2020. at the same time, his lawyers were telling the dmv that there were only at level two. he was telling investors he was going to be at level five by 2020. there is not one robo taxi on the road. they put a chip in a pigs brain. m.i.t. did a review of that and the best of all is so the roof

day. they are going to sell their investors on the solarcity acquisition. it was so controversial. every other thing he has done before, he has made aggressive promises that he has not cap. >> gordon is giving us an earful. i take it he was not invited. quest courting, it is like you punched me in the gut. level five as you mentioned. that is really a game changer. how far off are we from that? gordon: i think level five is so far away. let me just give you an example of some of the risks to the claims they made.

right now, gm and ford have hands-free driverless technology on the road. today. you can drive a gm or a ford car hands-free. they are not even registering miles. gm and ford are level three. i think we are years away. the experts say level five technology -- keep in mind that tesla has been selling this technology since 2015. elon musk said every car we have -- we are making will have the capability for level five self drive. i don't know why he would say that. at the height of covid, they wanted to make ventilators. they did not make one later.

gm and ford did. when you make these aggressive claims, it can be more than just promises. people need to potentially look at this. >> tesla is any for some sort of investigation. when it comes to full self-driving, the turns of phrases used by tesla, we know that elon musk is by nature a bit of a showman. that is what it has always been about with the company. you say they have a negative side. what is the positive side to getting people to see this vision? >> i don't know the full answer to that. i think that is one dynamic.

i think the engineers are going to potentially look at these prior promises and miss them and be a little turned off. i think that is one dynamic. but let's talk about the company the quickly. everyone says this is the greatest ev company out there. look at china. this is on a quarterly basis. i think they are having problems all around. that does not surprise me that there looking to bring in talent because you're seeing the other automakers come in and there are places where there is real competition. that is about to happen in the u.s.. i think they are looking to reinvent the company but that may be hard.

gordon johnson, bring the energy. thank you so much for that, all things tesla ai. we are going to talk about ai. where are we in terms of artificial intelligence adoption? is it real? is it fallacy? is it a bright and shiny object? this is bloomberg. ♪

>> today, we are focused on all things artificial intelligence. the impact of ai on the future of business. >> we talk about what the reality is.

while compared to some of the executives out there. they are making a lot of headway in a lot of other industries. not just cars but how other businesses and industries adopted. we can see this implement a limited use cases. widespread adoption is still a ways off here. this is just a question of the timing and how fast we get there. let's get more analysis here. they put out some great research here. kind of where we are going with ai and where we are now, what the promises are. i wonder if you could cut through some of the hype here. we hear from a lot of ceos including elon musk talk about the ability of autonomous driving, the ability of artificial intelligence to do things in the here and now that are not necessarily realistic or proved.

what has been proven so far about the capabilities of ai? >> great question. these companies are really adopting ai in enterprisewide matters. when you look historically at this, overpromising and under delivering. in 10 years, you will have all the problems solved. it is making a significant impact. definitely far more progress than what it was.

the problem is just so hard. overpromising and under delivering. this is all about claiming that everest. people don't seem to get there. >> that might be the old at a just. the seismic change that will occur will be bigger than we ever anticipated. we feel like it is risk analysis. has a really been used there? what are we getting out of that? >> the way ai has been progressing, companies are gaining traction in three areas. the first one is monday, the

boring work. a very repetitive task. those are being automated. that is probably the place where this is being gained. that is one category. the second area, we are seeing this all over the place. ai is helping us make better decisions. whether it is the consumer or spilling over to the business side. where do i invest? can i have blueprints for me and not for everyone else? when we start testing the system, we can let it make those decisions automatically.

efficiency, effectiveness of decision-making. if we look at these three, more traction by every industry. we are just getting into the second area of getting better decision-making. that is the way we think about it in terms of how ai is being used. >> there are some graphics on the screen showing various sectors, the ai -- the health care sector,.

laces were ai has been limited. a lot of people are questioning. that is nice but do we really need it? how much of that fills a genuine need russian mark -- need? >> if you ask the core product people, they say the need may not exist. it is there to be created and there to be hardened. in the second category, there is obviously a need. getting more productivity out as we have seen. this is on the economic front.

when you look at where ai is, i use the analogy of we are very much in the 1984 of the pc revolution. ai is in a very similar position. very early days of adoption. it is not necessarily the need, it is what is possible for the technology. >> this is a really fascinating conversation. thank you for your time. we are talking about banks embracing machine learning.

more on bank of america's patent push next. this is bloomberg. ♪

>> today, we are focused on artificial intelligence. the impact of it, we learned that 1 wall st bank is actually spending a lot of money and effort into turning. >> this tells it all. 227 patents were granted in the first half of the year. they are all related to artificial intelligence and big-box data. this was all related to ai. >> i feel if you get a penny for every time a company or

blockchain -- catherine dockerty has been writing some great articles about it. what are you making of the race to get digital for these companies? what does it say about the banks more broadly? >> what is interesting is i connected with one of the innovators on bank of america's team. this is all about what is next for bank of america, how we will serve our customers and how we will integrate some of the teams that we had. it makes communication and the intelligence bridge the gap. that is what they have been doing for clients buying these new patents. they can use them to develop

their sickness and to be the next player and help out their customers moving ahead. >> give us an example of the things you might pursue with this, specifically within their business, what do you apply this to? >> ai, if you're ever on the phone and you're going through the motions hand you need to speak with an actual person, that could be used. there is a reference to the commercial business in streamlining so that it is easier to connect accounts. if you are pulling up your digital wallet, during the pandemic, we saw people going to physical locations -- physical atm's last. -- less. >> we thank you so much. that is a great story, go read

it on the bloomberg terminal. i always feel like we talk about ai, machine learning without any real tangible evidence. it is clearly not moving the way they expected. >> they are getting better but there is some work to do. >> they don't know -- i don't know if i am a real person or not. >> your biggest -- your deepest secrets. that is what real love could be. you don't want to miss the show tomorrow, we have -- of course, we are worried about what will be happening in terms of covid, the delta variant.

quite there is a big concert in central -- >> there is a big concert in central park. >> we are all going back in. >> this is bloomberg. ♪

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>> from the heart of where innovation, money, and power collide. in silicon valley and beyond, this is bloomberg technology with emily chang.