Why Artificial Intelligence (AI) is a Smart Investment
Artificial intelligence (AI) gets so much buzz, the skeptic in me says stay away from this investing theme. But that would be a big mistake, money managers tell me.
In my defense, I can’t help but notice the insanely robust sales projections from all the usual suspects are reminiscent of the spectacular forecasts for tech companies in 1999 — right before the internet bubble burst.
But with AI, the numbers are real — the market is estimated to have reached $39.9 billion in 2019 and is projected to grow to $190 billion by 2025, according to research from MarketsandMarkets. That’s a CAGR of 37.8% from 2019-2025. Those are impressive numbers, and they’re only going up, fueled by AI’s growing use in industries such as healthcare, finance, automotive and retail.
AI is revolutionizing industries
The growth of AI is not just hype – it’s reshaping industries across the board. In healthcare, for instance, AI is used for everything from predicting heart attacks to detecting cancers. In finance, AI is used to analyze vast amounts of data and detect fraud. In automotive, AI is used to help cars become smarter and safer, and in retail, AI is used for everything from improving supply chain management to enhancing customer experiences.
These use cases are just the tip of the iceberg; AI is only going to become more embedded into these and other industries as time goes on. As more businesses realize the benefits of AI, the market is only going to grow.
AI is here to stay
There’s no denying it: AI is here to stay. Businesses that ignore the potential of AI risk being left behind by their competitors. As such, companies are spending billions on AI research and development, fueling the AI market’s tremendous growth.
While some investors may be wary of the buzz surrounding AI, they would be making a mistake by staying away from this trend. AI is a smart investment, with real sales figures and a bright future in the years to come.
Investing in AI: What you need to know
For investors interested in pursuing AI, there are a few things to keep in mind. First and foremost, it’s important to focus on companies that are leaders in the field – or are rapidly catching up. Companies with cutting-edge AI capabilities and a sustainable business model are the ones that are likely to generate strong returns over the long-term.
Another key thing to keep in mind is the importance of diversification. While investing in AI can be a smart move, it’s important not to put all your eggs in one basket. In other words, investors should consider investing in multiple AI-focused companies, rather than just one or two. This can help spread risk and increase the likelihood of strong returns.
In conclusion, AI is a smart investment that offers real growth potential. With the AI market set to continue growing in the coming years, investors who focus on AI companies with strong fundamentals are likely to see strong returns.
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