How Can You Invest in Artificial Intelligence?

By www.ProfitableInvestingTips.com

Back in the day when Jobs and Wozniak
invented the Apple computer they simply
used existing technology to provide folks
with their own personal computer.
http://profitableinvestingtips.com/profitable-investing-tips/how-can-you-invest-in-artificial-intelligence

As computer technology has advanced
over the last forty years it has been
incorporated into PCs, laptops, tablets,
and smart phones.

Investors who profited were the ones
who put their money in companies that
made the best use of better and better
technology.

Today the “new wave” of technology is
artificial intelligence.

How can you invest in artificial
intelligence?

There are not very many companies that
are pure AI investments.

But, many of the tech giants and others
are using AI for advanced products and
services.

The key to profits in this arena will be in
the use to which AI is put and the profit
potential of that application.

Artificial Intelligence

Computers can process information much
faster than humans but can they think?

The concept of artificial intelligence goes
back to the 1950s and Alan Turing
(inventor of the computer system that
cracked the German Enigma Code).

Turing wondered if we would ever create
machine that could “reason at the level of
a human being.”

The “Turing test” is that “computers need
to complete reasoning puzzles as well as
humans in order to be
considered thinking in an autonomous
manner.”

A more current view is that in order to
have artificial intelligence at computer
system must display intentionality,
intelligence, and adaptability.

Intentionality

A key feature of the algorithms that make
up artificial intelligence is that they allow
computers to make decisions.

They do this by having access to vast
amount of digital information, having
remote sensors, and having incredibly
fast processing power.

Thus such a computer system can process
huge amounts of information almost
instantaneously to make real world
decisions.

The use of artificial intelligence in self-
driving cars is a prime example.

Self-Learning (Intelligence)

Artificial intelligence systems learn from
their mistakes and can correct their
programming to avoid making the same
errors again.

Such systems can keep learning and
improving their performance.

They can spot relevant information within
huge amounts of data and make
predictions that even intelligent humans
would find hard to make.

Such systems require intelligent
programming as well because the system
needs useful input to make useful
predictions.

Adaptability

A key feature of artificial intelligence is
that the smart, decision-making, and self-
learning system can adapt.

They learn from their own experience
and this takes them beyond what the
programmer or database might have
predicted. (Brookings Institute, What Is
Artificial Intelligence?)

Alan Turing

Self-Driving Vehicles

The reason why artificial intelligence can
be applied to self-driving vehicles to day
is because of the speed of data
processing, size of databases, improved
remote sensors, and programming that
ties all of this together.

The programming sets the parameters for
the autonomous vehicle and then it
learns “on the road.”

The Data Driven Investor writes
about artificial intelligence and
autonomous vehicles.

The automotive AI market reported that it
is expected to be valued at $783 million in
2017 and expected to reach close to $11k
million by 2025, at a CAGR of about
38.5%.

IHS Markit predicted that the installation
rate of AI-based systems of new vehicles
would rise by 109% in 2025, compared to
the adoption rate of 8% in 2015.

AI-based systems will become a standard
in new vehicles especially in these two
categories:

Infotainment human-machine interface,
including speech recognition and gesture
recognition, eye tracking and driver
monitoring, virtual assistance and
natural language interfaces.

Advanced Driver Assistance Systems
(ADAS) and autonomous vehicles,
including camera-based machine vision
systems, radar-based detection units,
driver condition evaluation and sensor
fusion engine control units (ECUs).

Deep learning technology, which is a
technique for implementing machine
learning (an approach to achieve AI), is
expected to be the largest and the
fastest-growing technology in the
automotive AI market.

It is currently being used in voice
recognition, voice search,
recommendation engines, sentiment
analysis, image recognition and motion
detection in autonomous vehicles.

So, how can you invest in artificial
intelligence?

We recently asked if it is time to buy
GM based on their moving into electric
and autonomous vehicles.

We noted in that article that the self-
driving car market could be worth as
much as $7 Trillion by the middle of the
century!

The Many Applications of
Artificial Intelligence

Investor’s Business Daily writes
about artificial intelligence stocks and
notes, as we did, that although there are
few companies that are strictly AI
investments there are lots of companies
applying the technology to their products
and services.

It’s no secret that Alphabet (GOOGL),
Microsoft (MSFT), Facebook (FB) and
Amazon.com (AMZN) are all spending big
bucks on AI technology.

The tech giants are putting AI in
consumer products and services, such as
voice-activated smart home devices.

Amazon, Google and Microsoft also are
pushing AI technology into cloud
computing.

Other companies highlighted in the article
are IBM, Accenture, Epam Systems,
Adobe Systems, Salesforce.com, Trade
Desk, MTCH, IAC, Five9, Nvidia, Fortinet,
Palo Alto Networks, VISA, and
MasterCard.

The point is that artificial intelligence will
have many possible applications.

And, it will be how effectively a company
applies the technology that will make the
difference for the investor.

Selling Picks and Shovels Instead
of Digging for Gold

A famous observation from the days of
the 19th century California Gold Rush
was that you were more likely to prosper
selling picks and shovels to eager miners
than by digging for gold yourself.

This thought may apply to the field of
artificial intelligence as well.

Applications of this advanced technology
require lots and lots of advanced chips.

The leader in this area so far is Nvidia but
companies like Tesla are now starting to
design and manufacture their own chips.

Forbes reported on why Tesla dropped
Nvidia’s AI platform last year and
replaced it with its own.

According to Musk, the Nvidia Drive PX2
computing platform – with one Pascal
GPU and 2 Parker processors or CPUs –
currently used in Tesla’s custom
autonomous computer Autopilot
Hardware 2.5 can process 200 frames a
second

compared to “over 2,000 frames a
second” with full redundancy and fail-
over with Tesla’s designed computer.

Nvidia supplies chips for the likes of
Mercedes and Honda.

To the extent that a maker of self-driving
cars wants to buy their chips instead of
building that technology from the ground
up, they will use someone like Nvidia, a
leader in the field.

Waymo Self-driving Car

How Can You Invest in Artificial Intelligence?

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