Is Artificial Intelligence Forging a Bright Future?

Artificial intelligence (AI) is rapidly transforming the way we live and work. As its name suggests, this technology refers to the field of computer science that focuses on developing intelligent machines capable of performing tasks that typically require human intelligence. It involves the creation of powerful algorithms and systems that can acquire, process, and analyse extensive amounts of data, learn from experience, and make decisions or predictions based on patterns or rules. AI encompasses various subfields, such as machine learning and deep learning, aiming to enable machines to understand, reason, and interact with the world in a way that mimics human capabilities. Even more ambitious, Artificial Super Intelligence (ASI), a.k.a. “superintelligence” aims at surpassing the intelligence and ability of the human brain.

Over the years, there has been much hype around AI. However, the recent release of OpenAI's ChatGPT that has attracted millions of users in a few months appears to be a tipping point, a revolution in usefulness. ChatGPT and other AI chatbots have opened a new world of applications, helping workers across many industries do their jobs more efficiently. As an illustration, a single skilled programmer can now accomplish tasks that once required a team. Conversely, individuals without prior programming experience will soon have the ability to generate functional code.

The applications of AI continue to expand each day, and we have only scratched the surface of its possibilities. Nevertheless, as the hype surrounding AI's business applications intensifies, conversations concerning ethics become increasingly critical. This is precisely the type of question that should be raised at the 2023 AI For Good Global Summit, organized by the International Telecommunication Union (ITU) in collaboration with 40 UN sister agencies and co-convened with the Government of Switzerland. It will take place on 6 & 7 July in Geneva.

While we acknowledge the importance of addressing these concerns, it is equally crucial to emphasize the numerous advantages offered by AI and its potential to serve the common good. Below we show some examples of how this technology can have a positive impact:

Healthcare

AI has revolutionized many sectors, including healthcare, by addressing long-standing inefficiencies and skyrocketing costs. From protecting patients' sensitive data from cybercriminals to diagnosing life-threatening health problems and assisting in surgical procedures, AI has become ubiquitous in this field.

Combatting climate change

AI is set to play a significant role in helping prevent climate change from wreaking irreversible damage to the planet, something that requires more than one solution. Researchers have been using AI to visualize the future effects of floods and apocalyptic wildfires - such as those which have recently produced record levels of carbon emissions in North America, with smoke reaching as far as Europe – as well as improve climate decision-making, monitor forests and rapidly share data.

Travel and navigation

AI is increasingly becoming a pivotal tool in the travel and transportation sectors, benefiting both service providers and users. It aids in suggesting efficient routes, making travel arrangements, and empowering individuals to make informed decisions. Travel companies are leveraging the widespread use of smart devices, with a significant portion of users relying on AI-driven travel assistants for tips, local research, and booking. Chatbots are rapidly transforming this industry, enabling human-like interactions for travel recommendations, competitive prices, and swift responses.

Detecting and destroying mines

Researchers are developing systems that employ drones and machine learning to remotely detect and safely disarm buried landmines, which kill or maim thousands of people every year.

These four applications are just some examples, among many others, that underscore the almost limitless potential of AI, something that many investors already understand as evidenced by the performance of Nvidia’s shares. The company’s market cap hit $1 trillion following the considerable AI push this year, with Nvidia Graphics Processing Units (GPUs) used in Open AI’s products, including ChatGPT.

If you are having a hard time settling on which stocks to pick, one of the best ways to gain exposure to AI is through an ETF such as the L&G Artificial Intelligence UCITS ETF (AIAI) which gained 34.24% year-to-date, outperforming the S&P 500 benchmark index by 17.53%.

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Group Data: Information Technology, AI & Big Data

Funds Specific Data : WTAI, AIAI