Why and how to invest in Artificial Intelligence (AI)? As at the beginning of any transformative trend, it’s a bit unknown. So, how to take advantage of this innovation? How to identify companies that create value through AI?
Let’s discover what is most appealing to investors who have made Artificial Intelligence their major asset, and follow the recommendation of Benjamin Franklin, American politician, and scientist: “An investment in knowledge will always pay the best interests. No wonder that the ai investments in the United States is bringing a new wind.
- AI: two investment opportunities
You can invest in
Pioneering companies that develop and market technologies that offer ready-to-use AI
Innovative companies that deliver new performance through the use of AI
- AI is not a new discipline
The first traces of AI date back to 1950 with Alan Turing, the British mathematician. From his article derives what is called the Turing Test, which assesses the capacity of a machine to hold a human conversation.
AI was recognized as a true scientific field in 1956 at Dartmouth College in the United States, during a workshop to develop ideas about thinking machines. Leading mathematicians participated in this project, partly funded by the Rockefeller Foundation.
- AI is a must-have technology area
The Big Data is the fuel of Artificial Intelligence to generate in-depth knowledge of the real world. The more AI systems can leverage digital data, the better they perform.
The progress of calculators and the growing volume of available data have exponentially expanded the capabilities of AI. This ability to make sense of the data will only increase; the analysis potential of the AI on customer behavior is being extremely high.
- AI is not artificial
The term “Artificial Intelligence” is misleading. Patrick Henry Winston, the US computer scientist, said: Artificial Intelligence is the study of concepts that make smart machines. AI is, therefore, a tool that uses powerful mathematical techniques combined with disparate and complex data to “increase” human capabilities.
- AI already offers great breakthroughs
Many experts have compared AI to a “fourth industrial revolution.” The first was steam energy in the 1800s. The second was industrial production in the 1900s. The third was information technology in the 2000s. The fourth is now related to AI technologies.
- Some industries benefit more from AI
According to Gartner, by 2020, over 85% of customer interactions will be managed without any human intervention. AI is in the early stages of business transformation but is already impacting many sectors such as banking, transportation, health, and industry.
- AI increases human capacity
The goal of AI is to relieve teams of repetitive tasks, so they can focus on value-added actions to focus on the right goals. The AI allows efficiencies and offers companies new levers to operate to boost their talents and reveal this value. AI is changing trades to make them more interesting.
- To invest in AI, the human decision remains essential
Investments in AI are booming. Patent filings in the field are reaching new heights, and in the United States, there are 20 times more specialized start-ups than four years ago. According to Gartner, 50% of analytics applications will embed Artificial Intelligence functions within 3 to 5 years.
Finally, here’s the insightful advice from a leading independent investment expert, The Motley Fool. Many tech investors often look for breakthrough firms that can change the game in a particular industry. But with the AI, the market is still so young that it is better for investors to bet on the companies currently market leaders.