Rise of the Machines - Artificial Intelligence
Artificial intelligence has become a hot topic for businesses and investors. The launch of ChatGPT in late November 2022 was a watershed event in the world of artificial intelligence. Some believe it is on par with the Netscape IPO or when AAPL released of iPhone. As technology advances, companies are leveraging AI in new ways to expand and innovate their current business models.
Today, the global AI market is over $136 billion. 33% of companies have implemented AI in a limited form. Another 25% have their processes fully enabled by AI with widespread deployment. 21% have a few promising AI concepts and looking to scale. The projection is for AI to increase by 13-fold in the next 7 years reaching 1,812 billion by 2030. In the US alone, the AI market can grow to $300 billion by 2026, expanding at a CAGR rate of 38% in the next 7-years.
We have been utilizing artificial intelligence (AI) in more ways than you think. Artificial intelligence is the foundation of machine and deep learning. It will be the future of all complex thinking and decision-making process. A computer deploying sophisticated AI can process massive amounts of data, making life easier for humans.
We encounter AI in everything we do - both personal and professional.
Each time we watch a Netflix movie, we use a complex computer algorithm that arranges the movie menu. Perhaps no other company utilizes AI more than Amazon. Purchasing a product on Amazon.com entails using complex AI technology to find the best price and the optimal delivery. A self-driving car such as Telsa utilizes sophisticated AI vision recognition software. A simple Google search involves thousands of AI software codes. AI can also filter spam in Gmail. Almost all mobile cell phones have AI-powered speech and language recognition voice assistants (8 billion in 2023).
Although there is no consensus on when or if artificial intelligence can surpass human intelligence, about half of AI experts expect AI singularity will happen sometime before 2060.
There is a 50% chance that high-level machine intelligence will be "smarter" than humans. It would imply we may be entering the final stage of ANI (artificial-narrow intelligence), where the intelligence of machines and humans are the same.
To participate in artificial intelligence technology, an investor can purchase individual AI stocks such as AMZN, MSFT, GOOGL, IBM, META, NVDA, NFLX, MU, ISRG, ADBE, SNOW, and PLTR.
Another way to play the AI theme is via a basket of AI stocks via popular ETFs, including Global X Robotics and Artificial Intelligence ETF (BOTZ – $1.534 billion market cap), ROBO Global Robotics and Automation Index ETF (ROBO – $1.319 billion), iShares Robotics and Artificial Intelligence ETF (IRBO – $268.92 million), and First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT – $204.10 million).