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The 21st century will probably be an even more exciting time to be alive than anything our species has witnessed before. We are on the cusp of a new era, where artificial intelligence will play a major role in shaping the future: We are about to witness the next economic revolution!

As businesses and economies around the world start to adapt and transform, its important to make sure youre prepared and aligned to profit for whats to come.

In my opinion, one of the best ways to do so is by at least building some investment exposure in artificial intelligence!

Lets deep dive into the next $1 trillion industry!

Artificial intelligence (AI) is set to revolutionize the future of economic development, allowing businesses to leverage unprecedented capabilities and streamline processes in an ever-changing landscape.

Its the new frontier and the next big economic revolution!

While many economists are worried about greenflation, onshoring, and other inflationary problems, unleashing artificial intelligence and robotics could be the next building block to keep the former in check and most likely add more productivity gains as those gone lost.

The big issue though will be:

Who is set to profit from whats to come?

Hoping for humanity to move in the right direction here, workers who learn to use AI to improve their own productivity are set to gain the most, second should be those who own the new winners and invest in the future.

You see, I dont believe our workforce will be replaced by AI, but I believe the current workforce will be slowly replaced by a workforce that understands how to make use of AI.

Its like a new machine, a tool, a hammer, or an engine: Those who know how to use them will improve their worth and productivity multifold going forward.

Its time to invest into the potential of AI by learning more about it, securing some ownership of promising ventures, the industry as a whole, and skilling yourself up!

Invest In Artificial Intelligence to unlock unprecedented opportunities and secure a market advantage in the 21st-century economy.

Artificial intelligence is set to revolutionize the way we live and work.

It is NOT to be ignored as it changes everything.

By investing some time to learn and leveraging its power, you could potentially unlock unprecedented opportunities and secure a market advantage in future economic growth.

As mentioned above, the best way to benefit from this new economy is by investing in AI technologies and companies that are going to help drive innovation and efficiency, so lets explore this field a bit more.

As an investor you got several options to get invested, you can review a few listed companies and try your luck, or you can invest in much broader diversified ETFs in artificial intelligence and/ or robotics. The most important point here is to be clear about whether or not to diversify!

Every time a new industry is growing, there will be hundreds if not thousands of contestants trying to make it, a large part of these will disappear again and in the end, some new players or even old players will emerge as winners of new technologies.

As an investor one got to be hyper-clear on this as you may have to think if you want to diversify or di-worsify. While diversification works for economies as a whole, your AI/ robo ETF position would still be a concentrated exposure in this niche field, hence, youd also be holding all the losers. And yes, you will also hold the potential winners!

When buying single stocks, you may be lucky to pick the right company, or you may face a total wipeout by investing in the wrong guys.

Diversify or di-worsify, theres a very fine line between the two!

Most importantly: Know what and why you are doing one or the other!!!

Without a doubt, as expenditure for AI solutions is growing at almost 30% year over year since 2019 (from $30bn to now close to $100bn in 2023), its highly interesting to own a piece of the action!

Did you know there are already more than 65 AI companies valued in excess of $1 billion?

So, how you can get your foot into this as investor?

There are three ways:

The right choice here is also up to you and how much time and effort youre willing to spend on researching and identifying the market.

The less time and expertise you bring with you, the more I tend towards diversification and/ or delegation while vice versa you might be finding great opportunities in this market by bringing up the right time and effort here!

Lets have a look.

There are several AI/ Robo ETFs already available to retail investors, with more being added all the time. This is a great way to get exposure to the market without having to do too much research.

All you need is an online broker and some money to get started.

Some of the most popular ETFs are: BOTZ, ROBO, IRBO, ROBT

BOTZ, the Global X Robotics & Artificial Intelligence ETF, got established back in 2016 and is a fund that invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence. This may include companies working in industrial robotics, automation, non-industrial robots, and autonomous vehicles.

ROBO, the ROBO Global Robotics and Automation Index ETF is focused on companies driving transformative innovations in robotics, automation, and artificial intelligence. It invests in companies that are mainly focused on AI, but also ventures into cloud computing and other technology companies.

IRBO, the iShares Robotics and Artificial Intelligence ETF aims to track the results of an index of developed and emerging market companies that might benefit from long-term opportunities in robotics companies and artificial intelligence.

ROBT, or First Trust Nasdaq Artificial Intelligence and Robotics ETF is more of an index tracking ETF as it seeks to track the Nasdaq CTA Artificial and Robotics Index made up of companies engaged in artificial intelligence and robotics in technology, industrials, and other sectors.

Disclaimer:

Please take note to do your own research and dont simply put all your savings into one of these funds, you may consider this niche as a tactical/ opportunistic satellite investment. Beware to get your asset allocation right and look for professional support in case of doubt!

While identifying and picking single stocks is the more difficult route to go about this, it might be the more rewarding route for investors willing to invest their time and do their homework.

The best opportunities await those who embrace ongoing learning!

However, I would not recommend this route for less experienced investors though as it requires not only more time but also a must deeper understanding of equity markets and a willingness to take action in a fast manner every once in a while.

Most recently Ive screened through a few tickers for this reason, a great way to go about it is to download the holdings/ position overview of the abovementioned ETFs and see what has been added and/ or decommissioned most recently.

While doing it this way will not give you a cutting-edge advantage and it comes with some delays, it will still give you some color about whats going on and what professional investors are doing! At least, you can learn something from doing this.

Ive found many interesting investing ideas by looking at holding lists of thematic ETFs and/ or mutual funds before. As for single stocks on AI/ robotics, let me share a non-conclusive (and static!) list of 20 stocks. Please dont take this simply as a buy-list or investing advice, do your own research and beware that things can change going forward.

IRBT (iRobot, the leading robotic and home innovation firm)

MSFT (Microsoft, a leading global software company, ChatGPT anyone?)

GOOG (Google says it all the leading global search platform)

TSLA (Tesla, the leading global autonomous driving software)

LMND (Lemonade, AI driven insurance provider)

AI (C3.AI, hey, the ticker is AI duh!)

NVDA (NVIDIA is a leading graphics and computing company)

AMZN (Amazon, the leading online shop powerhouse)

VERI (AI software and machine learning company)

IBM (IBM is still a relevant player, software, solution and consulting company)

MU (Micron, Memory and storage production leader)

SNOW (Snowflake Inc., international cloud-based data platform)

EPAM (EPAM Systems provides digital platform and software development services)

AMAT (Applied Materials provider of manufacturing equipment, services, and software to the semiconductor, display, and related industries)

ACN (Accenture provides strategy and consulting services globally)

META (Facebook, still one of the social media leaders, restructuring for a brighter future)

NOW (ServiceNow offers automation cloud computing solutions worldwide)

S (SentinelOne operates as an international cybersecurity provider)

AYX (Alteryx provides analytic process automation business solutions)

BIDU (Baidu offers search services mainly in China)

So, there you have it!

If youre one of those daring investors, I would suggest that you look into the fundamentals, business ideas and plans of these companies and do your own research before investing.

And dont forget to leverage professional advice where appropriate, you may book me on the DDI Chat for personal finance and wealth management sessions directly here:

Last but not least, you can also invest into the future using AI as your tool of choice.

However, be careful not to delegate everything to the bots just quite yet, but theres nothing wrong exploring some service providers who have developed amazing tools to navitage markets as a SaS provider:

For instance, there are a few of these service providers who focus on using AI to assess the content and sentiment of news & articles around publicly traded companies, helping investors make decisions based off data-driven signals.

You can also find some services that specialize in backtesting trading strategies to simulate how they would have performed over a certain period. If youre into algorithmic trading, this might be an interesting route to explore.

Finally, there are some providers of robo-advisory services, which automate the selection of investments and portfolio management processes for clients who dont feel comfortable managing their own assets. This could be another great way to leverage artificial intelligence in your investing journey.

Overall, AI is a great tool to help investors uncover new insights and make better decisions.

It can be an incredibly powerful way to invest in the future!

Just remember that no investment should ever be made without conducting due diligence first or talking to a professional first.

As long as you do your homework, there are plenty of potential rewards waiting for you!

One thing is sure, those who understand and make use of AI will be the ones to gain the most out of this opportunity.

From early adopters, innovators, investors and entrepreneurs, everyone will have an equal chance to create their own success stories in the new AI economy.

By investing in the right companies and taking advantage of AI-driven services, it is possible to reap greater returns while mitigating risk.

With the right strategies and tools, you can create a portfolio that will stand the test of time and provide you with financial security in the years ahead.

So, if youre looking for ways to invest in the future, consider AI as an option. Theres no harm to explore new tools to empower yourself further.

Stay informed, educated, profitable, and happy investing!

Matt

Originally posted here:
Invest In Artificial Intelligence To Profit From the 21st-Century Economy - DataDrivenInvestor