LIZ: THE U.S. AND CHINA ARE NECK
AND NECK IN THE RACE TO DOMINATE
ARTIFICIAL INTELLIGENCE PATENTS,
BUT CHINA'S GOVERNMENT IS FAR
OUTSPENDING THE U.S. AND LEADS
THE U.S. ON FILING WHAT ARE
CALLED DEEP LEARNING PATENTS.
IT'S NOT ALL IMBALANCED HERE.
ACCORDING TO A U.N. STUDY, U.S.
TECH GIANT IBM HAS THE BIGGEST
AI PATENT PORTFOLIO, BUT YEAH,
CHINA HAS THE MOST TOP ACADEMIA
DEDICATED TO ARTIFICIAL
INTELLIGENCE RESEARCH.
WE ARE TOLD PRESIDENT TRUMP JUST
SIGNED AN EXECUTIVE ORDER ON
QUOTE, MAINTAINING AMERICAN
LEADERSHIP IN ARTIFICIAL
INTELLIGENCE, BUT ARROW
ELECTRONICS IS A COMPANY THAT
HAS ITS FINGER ON THE PULSE OF
WHEN IT COMES TO WHO'S DOING
WHAT.
THE COMPANY PROVIDES PRODUCTS
AND SERVICES FOR MORE THAN
200,000 LEADING TECHNOLOGY
COMPANIES, INCLUDING THE AI
BIGGIES LIKE MICROSOFT,
HEWLETT-PACKARD, AT & T AND IBM.
IN A FOX BUSINESS EXCLUSIVE,
LET'S BRING HIM IN.
ARROW ELECTRONICS CEO MIKE LONG.
HE'S RINGING THE CLOSING BELL AT
THE NEW YORK STOCK EXCHANGE FOR
A NICE ANNIVERSARY FOR YOUR
COMPANY.
CONGRATULATIONS, MIKE.
>> THANKS, LIZ.
IT'S GOOD TO SEE YOU.
APPRECIATE YOU HAVING US ON.
LIZ: GIVE ME YOUR GUT REACTION
TO WHO'S IN THE LEAD WHEN IT
COMES TO ARTIFICIAL
INTELLIGENCE.
>> WELL, MY VIEW IS IT'S STILL
THE U.S. IS IN THE LEAD WHEN IT
COMES TO THE BROAD RANGE OF
ARTIFICIAL INTELLIGENCE.
OF COURSE, ANY COMPANY CAN FOCUS
ON ONE AREA OF ARTIFICIAL
INTELLIGENCE AND HAVE SOME TYPE
OF POWER, BUT IF YOU THINK OF
SMART CITY, AUTOMOBILES, SAVING
LIVES, THOSE TYPE OF THINGS,
U.S. FAR AND AWAY AHEAD OF
ANYTHING.
LIZ: LET'S TALK ABOUT YOUR
CLIENTS AND WHAT THEY ARE DOING
IN AI.
OBVIOUSLY YOU HAVE GLOBAL
CLIENTS.
I UNDERSTAND YOU ARE IN MANY,
MANY DIFFERENT COUNTRIES, MORE
THAN 80 COUNTRIES, SO IT'S NOT
JUST THE UNITED STATES.
I WOULD IMAGINE YOU HAVE SOME
ASIAN CUSTOMERS AS WELL.
LET'S NOT COUNT OUT THE KOREANS.
I JUST SAW LG AT THE CONSUMER
ELECTRONICS SHOW PUT ON AN
UNBELIEVABLE AI PRESENTATION,
TOO.
>> YES.
THE CUSTOMERS THAT WE WORK WITH,
IF YOU THINK OF AUTOMOTIVE,
THINK OF THAT FOR A SECOND,
THINK OF THE U.S., THINK OF 3500
DEATHS A YEAR.
IF WE CAN IMPROVE THAT BY 1%,
YOU SAVE 35 PEOPLE A DAY.
THE BENEFITS OVERALL, EVERY
AUTOMOTIVE COMPANY IN THE WORLD,
WHETHER IT'S THE KOREANS, THE
CHINESE, THE EUROPEANS, OR
PEOPLE IN NORTH AMERICA, YOU
JUST WANT TO GET MORE DATA SO
YOU CAN MAKE THINGS SAFER.
LIZ: WE DON'T HAVE ANY DETAILS
ON THE EXECUTIVE ORDER SORT OF
DEEP DETAILS ON WHAT THE
PRESIDENT JUST SIGNED.
HOWEVER, SOME OF THE THINGS THAT
ARE TALKED ABOUT, NO LUMP SUM IS
GOING TO BE GIVEN TO STARTUPS IN
AI OR WHATHAVE YOU, BUT HE SAID
THAT IN THIS APPARENTLY WE WILL
SEE RETRAINING WORKERS,
ESTABLISHING STANDARDS.
I GET NERVOUS ABOUT THAT,
BECAUSE THAT TO ME MEANS
REGULATION, BUT WE SHALL SEE.
REALLOCATING FUNDING.
NOW, DOESN'T IT TAKE MORE THAN
JUST REALLOCATING FUNDING, WHEN
I THINK BACK TO THE HISTORY OF
THE U.S. GOVERNMENT FUNDING THE
STARTING INDUSTRIES THAT WE
REALLY NEEDED, THE RAILROAD
INDUSTRY, FOR EXAMPLE, 1862, THE
PACIFIC RAILWAY ACT, CONGRESS
HAD SIGNED AND PASSED, THIS
FINANCED TRANS CONTINENTAL
RAILWAY THAT PUT US IN THE LEAD.
WHAT DOES THE U.S. GOVERNMENT
REALLY NEED TO DO?
>> WELL, HERE'S THE INTERESTING
THING THAT YOU ARE TALKING
ABOUT, IS THAT THE GOVERNMENT'S
LOOKING TO SPEND THE MONEY
ACROSS A LOT OF INDUSTRIES WITH
A LOT OF PEOPLE, STARTUPS AND
OLD MATURE TYPE COMPANIES THAT
ARE DOING THIS WORK.
THAT'S FANTASTIC FOR US, BECAUSE
SINCE THE LAST TIME I SAW YOU,
OUR CUSTOMER BASE IS NOW UP TO
ABOUT 200,000 CUSTOMERS.
LIZ: WOW.
>> IF YOU THINK ABOUT AI IN
GENERAL, EVERY TIME WE NEED
DATA, WE ARE SELLING A SENSOR IN
OUR COMPONENTS BUSINESS, SO THIS
IS THE BIGGEST OPPORTUNITY THAT
I HAVE EVER SEEN IN ELECTRONICS
GOING FORWARD.
I THINK I SAID THAT TO YOU THE
LAST TIME I WAS HERE.
BUT IF YOU TAKE A LOOK AT OUR
TEN-YEAR CHARTS, IT JUST GOES TO
SHOW IT'S STILL GOING.
LIZ: I DON'T NEED TO.
I CAN LOOK AT YOUR ONE QUARTER
CHART OR YEAR-TO-DATE.
YOU ARE UP 15%, BLOWING OUT OF
THE S&P.
THAT'S FANTASTIC.
THEY ARE UP ABOUT 6% OR 7%.
I WANT TO PIVOT TO TRADE HERE.
CHINA AS I UNDERSTAND IT
PROVIDES ABOUT 15% OF YOUR TOTAL
SALES.
HOW HAVE THE TARIFFS THAT ARE IN
PLACE RIGHT NOW, HOW HAVE THEY
AFFECTED YOUR BUSINESS?
WHAT ARE YOU SEEING HERE AND HOW
SOON WOULD YOU LIKE TO SEE THE
TARIFF WAR OR TARIFF TRUCE COME
TO AN END AND WE CAN GET ON WITH
DEALING WITH CHINA?
>> YEAH.
WE DON'T LIKE TARIFFS.
THAT'S THE BOTTOM LINE.
WE LIKE TO SEE FREE TRADE.
HOW LONG IT TAKES US TO GET
THERE, I'M NOT A BELIEVER THAT
YOU CAN STOP ALL TRADE JUST TO
GET TO A DEAL BECAUSE THEN YOU
HAVE NO DEAL.
TO ME, THE MOST IMPORTANT THING
IS WE GET IT RESOLVED QUICKLY
BECAUSE FOR EVERY DAY WE'RE NOT
GETTING THIS RESOLVED, YOU HAVE
COMPANIES THINKING ABOUT MOVING
PRODUCTION OFFSHORE AND THAT IS
NOT GOOD FOR AMERICAN
MANUFACTURERS.
WE NEED TO DO EVERYTHING WE CAN
DO TO KEEP MANUFACTURING IN THE
U.S.
AI GIVE US A GREAT CHANCE TO DO
IT.
I'M JUST SAYING LET'S NOT BLOW
IT.
LIZ: LET'S NOT BLOW IT.
WE SHALL SEE.
MIKE, GREAT TO SEE YOU.
CONGRATULATIONS TO YOU AND
NEARLY 19,000 EMPLOYEES YOU
EMPLOY.
>> IT'S BEEN FANTASTIC RUN.
WE ARE SO APPRECIATIVE.
THANK YOU VERY MUCH.
LIZ: GOOD FOR YOU.