February 10, 2025 09:00 PM GMT Asia Quantitative Strategy | Asia Pacific M Idea Quant Driven Ideas: Identifying Alpha Opportunities in APxJ in February 2025 M We highlight monthly stock ideas based on our quant model MOST. Our Quantamental Connect platform provides investors with stock ideas based on our quant models and investors' customized criteria. Morgan Stanley Asia (Singapore) Pte.+ Daniel K Blake Equity Strategist Daniel.Blake@morganstanley.com +65 6834-6597 Morgan Stanley Asia Limited+ Nicola Mak Q ...

Investment Rating - The report does not explicitly provide an investment rating for the industry of generative AI in higher education Core Insights - The report emphasizes that the emergence of generative AI represents a pivotal moment for higher education, challenging traditional assumptions about teaching, learning, and the purpose of universities [16][17] - It identifies five interdependent elements essential for successful generative AI integration, forming the 'CRAFT' framework: culture, rules, access, familiarity, and trust [18][19] - The report calls for immediate sector-wide action, including the formation of collaborative clusters among universities and elevating students as partners in the integration process [20][21] Summary by Sections Executive Summary - The report outlines the need for transformative change in higher education to adapt to generative AI, moving from reactive to proactive strategies [16][17] - It highlights the urgency for universities to integrate AI responsibly while maintaining educational integrity [17] Introduction - The introduction discusses the varied reactions of higher education to generative AI since its introduction, noting an initial moral panic followed by a growing acceptance of its permanence [25][26] - It positions AI as a general-purpose technology with the potential for widespread impact across society and education [26] Current State and Future Directions - The report notes that universities are currently responding to generative AI in a piecemeal manner, often focusing on immediate concerns rather than systematic integration [17][30] - It identifies key insights from workshops that emphasize the importance of transparency, trust, and equitable access to AI [32] Five Areas for Action - The report outlines three core areas of focus for universities: rules, access, and familiarity, which are essential for responsible AI integration [48][49] - It emphasizes the foundational role of trust in fostering effective engagement with generative AI [49] Rules - Establishing meaningful rules is critical for responsible AI use, including principles and guidelines that govern engagement with the technology [52][55] - The report provides case studies illustrating how institutions have begun to establish rules around generative AI usage [53][54] Access - Equitable access to generative AI applications is essential to prevent exacerbating existing digital divides [72][73] - The report discusses the financial barriers to accessing advanced AI capabilities and the need for collaborative efforts to ensure availability [74]