Fast rising technologies are always buzzing with excitement because of the potential impact in our every day lives, but where are the investment opportunities?
Artificial Intelligence has been labeled as not just a $50 Billion dollar market, but as an inevitable catalyst to change entire industries. How do we know that? Look at the changes we have already seen over the past 5-10 years. AI, at a basic level, is the use of algorithms and data mining to learn and make decisions. We do love algorithms (we use one for our stock market trend following service), but what happens when they are used to learn and predict human behavior?
Look no further than social media and the entire marketing/advertising industry. Companies like Facebook, Google, Apple, and Amazon are not just acquiring technology startups, but they have spent a large amount of time and capital creating their own infrastructure of AI...all with the intention of learning as much as they can about the consumer. Everything from browser history to purchasing behavior has been gathered and quantified. That's old news, albeit a little frightening. Should we proceed with some level of caution or find a horse to bet on?