Artificial intelligence (AI) is one of the most transformative technologies of our time, and it has the potential to revolutionize nearly every industry. As a result, many investors are eager to invest in AI and other large language models that use AI, seeing it as an opportunity to tap into the growth potential of this rapidly evolving field. Here are some reasons why investors should, and should not, consider investing in AI and other large language models.
Ultimately our goal here is to offer readers the pros and cons of investing in AI today. Yet this is obviously not personalized investment advice of any kind. Investors should consult with an investment professional before making any investment much less one in such a novel and possibly speculative technology like AI. With that, let’s start out with the bear case on AI.
For that we will turn to Kailash Concepts. Founded by a team of experienced money managers and a leading academic in the field of behavioral finance, Kailash’s research consistently pointed the evidence that the speculative mania that gripped America in 2020 would end badly. We think their predisposition for prudence and caution makes them a terrific place to start.
They recently posted a missive titled Out with the Old, In With the New: What ChatGPT Means for You. Written in simple language they make a compelling case for why not to invest in AI today. The piece reminds readers that change and disruption in tech is a recurring feature of the investment landscape. Their view is that the benefits of technology tend to flow to society over time rather than to the investors and their website is loaded with free charts highlighting the timeless lessons of history.
As is often the case with new technologies, the bulls currently have the upper hand. Amazed with this new technology, users are clamoring to invest in AI. Here’s why:
AI has the potential to disrupt many industries
AI is already being used in many industries, such as healthcare, finance, retail, and transportation, to improve operations and drive innovation. For example, AI can help doctors diagnose diseases, assist traders in making better investment decisions, and enhance customer experiences in retail. As AI technology continues to advance, we can expect to see even more industries being disrupted, creating new investment opportunities.
AI can improve efficiency and reduce costs
AI can automate routine tasks and decision-making, freeing up time for humans to focus on more complex and creative tasks. This can lead to increased efficiency and productivity, which can in turn reduce costs for businesses. As more businesses adopt AI, there is a growing demand for AI solutions, providing an opportunity for investors to invest in companies that offer AI products and services.
Large language models have the potential to change how we communicate
Large language models, such as GPT-3 and BERT, are AI systems that can generate human-like language. These models have the potential to change how we communicate, as they can be used for natural language processing, translation, and even creative writing. As the technology advances, we may see more applications of large language models in various industries, such as education, media, and marketing.
AI can lead to more personalized experiences
One of the benefits of AI is its ability to process and analyze large amounts of data quickly and accurately. This can enable businesses to provide more personalized experiences to their customers, such as customized product recommendations or personalized marketing messages. As businesses increasingly adopt AI, investors can expect to see more investment opportunities in companies that offer AI-powered personalization solutions.
AI can help address some of the world’s biggest challenges
AI has the potential to address some of the world’s biggest challenges, such as climate change, healthcare, and poverty. For example, AI can be used to improve energy efficiency, develop new drugs, and provide access to education and healthcare in remote areas. Investing in companies that are working on these solutions can not only provide financial returns, but also make a positive impact on the world.
AI is still in the early stages of development
Despite the progress that has been made in AI, the field is still in the early stages of development. There is still much to be discovered and many new applications of AI that have yet to be explored. As such, there is a lot of room for growth and innovation in the field, creating new investment opportunities for investors who are willing to take a long-term view.
AI is a competitive advantage for businesses
As more businesses adopt AI, it is becoming a competitive advantage. Companies that are early adopters of AI are able to leverage the technology to improve their operations and gain a competitive edge over their rivals. As such, there is growing demand for AI solutions, which can provide opportunities for investors to invest in companies that are at the forefront of AI innovation.
In conclusion, investing in AI and other large language models using AI can provide investors with an opportunity to tap into the growth potential of this rapidly evolving field. AI has the potential to disrupt many industries, improve efficiency and reduce costs, change how we communicate, lead to more personalized experiences, help address some of the world’s biggest challenges, and provide a competitive advantage for businesses. However, it is important to note that investing in any industry brings risks.
And as a reminder: we started this piece with Kailash’s work for a reason. The risks to investing in AI and any other novel technology are many and myriad. The highlight reel above is why investors are excited to invest in AI but that does not mean they will actually materialize much less generate profitable investments!