Artificial intelligence (AI) has captured the world’s attention. The technological advances of artificial intelligence are astonishing. However, many people fear these technological advances could end up replacing many jobs and changing how our society operates.
While there are a lot of unknowns regarding AI, there are also a lot of opportunities. Investing in AI could be one of these opportunities.
Let’s take a closer look at what artificial intelligence is, how to invest in it, and whether investing in it is a good idea.
What is artificial intelligence?
Artificial intelligence is a computer system created to multi-task and respond to prompts. The idea is that this type of computer system would be able to respond using reason and facts to provide an answer, similar to how a human would but, in theory, better than a human could.
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AI has the capacity to translate between languages, answer questions, and potentially even make decisions.
How can you invest in artificial intelligence?
One way to leverage the growth of Artificial Intelligence is to invest in it.
There are a couple of ways you can go about investing in it:
- Invest in a company’s stock that creates and develops artificial intelligence systems. For example, Microsoft, Alphabet Inc. (Google), Amazon, Workday, Tesla, etc. These are just a handful of the numerous companies that devote a large sum of time and money toward developing artificial intelligence.
- Invest in artificial intelligence Exchange Traded Funds (ETFs). ETFs are made up of various stocks and other investments. Since ETFs allow you to hold multiple stocks and investments from different companies, this option will allow you to have a diverse artificial intelligence investment portfolio. Diversification helps to minimize risk.
Is it a good idea to invest in artificial intelligence?
Artificial intelligence is still developing, and its future is not yet 100% clear. Because of this, there is some risk involved with investing in it.
AI has come a long way in recent years; however, there are still times when it provides incorrect information or malfunctions entirely.
Recently Google’s parent company Alphabet Inc. held an event demoing its artificial intelligence technology. According to an article on NPR, during this demo, Google’s AI gave an incorrect answer when asked, “What new discoveries from the James Webb Space Telescope can I tell my 9-year-old about?” The artificial intelligence system responded with several statements, including that “the telescope took the very first pictures of “exoplanets,” or planets outside of earth’s solar system.”
Across social media platforms, numerous people pointed out that the artificial intelligence system had made a mistake and that the European Southern Observatory’s Telescope was actually the first to take such pictures. This mistake resulted in Google’s stock prices falling 9%, a nearly $100 billion drop.
While this could strike fear in many investors, the future of AI appears to be promising nonetheless.
Artificial intelligence is used in many different industries. Because of its widespread use; many experts believe that AI may be an excellent long-term investment.
While the future of artificial intelligence is still unknown, its development and growth are not slowing down anytime soon.
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