Technological trends tend to receive a lot of hype. Many of them genuinely have the potential for transformation, but other innovations can be a huge flop. Investors are often skeptical when it comes to investing in the next big thing. Technology powered by artificial intelligence (AI) is everywhere around us, and investors should take this hype seriously. From data security and education to automakers, companies in many industries are using AI to take their business to the next level.
If you are still deciding whether to invest in AI, here are the top reasons why investing in AI stocks is a good idea.
Huge market potential
According to Tractica, by 2025, the revenues generated by AI software have the potential to jump to $59.8bn. Many companies already have a substantial vested interest in the market. NVIDIA, for example, is a company making graphics processors and is already selling AI-powered supercomputers and driverless car technology. AI has quickly emerged as one of the most potent technological innovations, with huge market potential to take advantage of.
AI is expected to make companies efficient, allowing them to introduce quality products in sectors such as transportation, energy, manufacturing, communications, retail, financial services, and healthcare. The revenues generated from new hardware and services and the cost savings from implementing AI in older, inefficient systems have massive potential.
AI is transforming computing systems
Whether you know it or not, you may have already encountered AI in one way or another. Apple’s Siri, Google Assistant, and Amazon Echo all use AI. Smart assistants such as these have already changed how we interact with these computing platforms. AI makes it easier to analyze and learn from data. Amazon Web Services (AWS) now offers powerful machine learning services to improve speech generation, image analysis, and natural-language processing across services and apps that use AWS. Many of the websites and apps you use already utilize AI for precise speech recognition, accurate photo recognition, and efficient product searches.
AI is applicable in sectors other than tech
AI is not limited just to the technology sector. AI has the potential for strong growth across almost every industry, including aerospace, consumer devices, healthcare, finance, advertising, transportation, and retail. For example, Cortana Intelligence by Microsoft was recently used by Carnival Cruises to improve water consumption on its vessels. Implementing AI allowed the company to track water usage and make automatic adjustments to improve efficiency, helping it save considerable money. Investing in AI stocks makes sense because the technology is slowly making its way to virtually every industry, bringing transformation and improving processes.
AI is not too risky
One of the main reasons why many investors may be wary of investing in AI stocks is because emerging technological trends tend to be risky. Virtually every major company today is spreading out its reach to different opportunities, including AI. Investors can benefit from it without getting burned out. Even while companies are waiting for AI’s potential to materialize, there are many solid dividing stocks to pick from to start earning.
AI innovations and machine learning technology are already taking the investment world by storm. It is a competitive field, but knowing which ones are the best AI stocks to invest in can make all the difference. AskTraders is one such platform that provides you with the resources and tools you need to find stocks from ground-breaking companies that have the potential to soar in the coming years.
The key takeaway
For investors, it is essential to know that AI is here to stay. The market for this technology is quickly growing. Forward-looking and savvy investors should consider which companies are already making a difference in this space. In the coming years, more businesses will take the leap and tap into technology to transform their processes and stay ahead of the competition. Major companies such as Google, Microsoft, and Amazon are already using AI to dominate their industries. The commitment of these companies to AI should alleviate any fears that investors may have about it being just an overhyped fad. Including AI stocks in your portfolio can help you stay ahead of the curve.
Leave a Reply