Riding the AI Trend

“There are no great limits to growth because there are no limits of human intelligence, imagination, and wonder.”

Ronald Reagan

The arrival of ChatGPT has certainly been disruptive from a media standpoint and quite a boon to self-help websites. Every other article seems to revolve around the “five or ten best ways for ChatGPT to help you…”. And while many of these tips may be surprisingly helpful, they don’t exactly show us how to predict the future of artificial intelligence (AI), given the little we’ve seen so far. Then there is the financial question: how will AI affect our economy and how do we expose our portfolios to this new phenomenon? After all, some projections from NextMove Strategy Consulting report that AI’s market cap value will reach $1.8 trillion by 2030.

One answer is that a well-diversified portfolio will already be exposed to it. Some of the companies and organizations working on AI that sit at the forefront of this technology are already significant players in the stock market. For instance, Google has been working on their own version of ChatGPT. Nvidia Corp, C3.ai Inc., IBM, etc. are all dabbling in the subject of artificial intelligence, as well.

But there are definitely more ways to think about investing, including exposing your portfolio to an adjacent sector—robotics—in the form of ETFs (exchange-traded funds) and mutual funds. What most people don’t realize is that many robotics companies have already been toying with artificial intelligence because manufacturing and robotics go hand in hand with AI. Having current exposure to the robotics sector, which we at Emergent include in our view of “alternative investment” sectors, means that clients of Emergent are already connected to the AI phenomenon without wondering how to get invested in particular stocks or if they missed the boat already.

Sometimes the best way to participate in a new technology isn’t to go out and buy the most recent company in the news for that technology, but to do the research and see if you are already exposed in ways you may not have considered beforehand.

I’m Nickolas Urpí

From Emergent Financial Services

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