Artificial Intelligence could double economic growth by 2030

Artificial intelligence could double economic growth by 2030. This is a great opportunity for investors, as the performance of many stocks and funds already shows! Artificial Intelligence (AI) is the generic term for machines that think, learn and act intelligently. Their development is increasing at an incredible pace. That large technology companies such as Google, Baidu or Amazon are serious about AI, shows an analysis by the consulting firm McKinsey. According to that, the companies invested between $ 20 and $ 30 billion in AI last year. As McKinsey predicts, 90 percent invested the lion’s share in research and spent about one in ten dollars on acquisitions. According to Allianz Global Investors, some researchers believe that artificial intelligence could double economic growth by 2035. Therefore, artificial intelligence is an asset for strategically minded investors. They can target artificial intelligence companies, invest in such assets and benefit from their high potential. This is all the more so because artificial intelligence occurs in many different forms, from industry 4.0 and robotics to machine learning and autonomous driving, to affective computing and natural language processing. Process Robotics and rule-based systems, which are used in 67 percent of the companies surveyed for the Deloitte study, are particularly widespread in Germany. A good example of a high-performing stock in the AI ​​segment is Zebra Technologies, a US-based provider of data capture and processing equipment. The value listed in the Nasdaq Composite Index has outperformed over 200 percent over the past three years. Intuitive Surgical, in turn, manufactures robotic-assisted surgery systems for performing minimally invasive surgery under the brand name “Da Vinci” and has gained approximately 135 percent in three years. Thematic funds, for example, are suitable for approaching certain individual areas of artificial intelligence, but also for completely mapping the market. Many AI concepts of companies are very special and can hardly be penetrated by an investor so that he can make an investment decision. Relying on a fund manager can therefore make sense if the results of the active management and the costs are in a healthy relationship over the long term. For example,…

Artificial intelligence to be used in stock market

Algorithms that buy and sell stocks based on specific criteria have come to stay. That their popularity is increasing, especially when markets are under pressure or a headline for a market collapse, which is so powerful that it is attributed to “the Algos”. Meant are algorithmic trading systems that are programmed to trade people like stocks. These methods, which use artificial intelligence, are so widespread that they have become part of the overall structure of the stock market. Take the sell-off in February 2018: At that time, the Dow Jones lost more points in one day than ever before. The extent was also so intense because automated trading systems, such as volatility targeting, are programmed to reduce the allocation of funds to equities when the market becomes unstable. Put simply, if machines are programmed to sell because a lot is being sold, it will result in a negative feedback loop like the one in February 2018. But the growing popularity of trading strategies driven by data and algorithms also has advantages. Emotional impulses that can lead to wild price fluctuations are excluded. According to Marko Kolanovic, JPMorgan’s Global Head of Quantitative and Derivative Research, they provide a degree of market stability on a daily basis. What has changed when investing – and what has remained the same When investigating the influence of Artificial Intelligence on the industry, it is important that investors do not lose sight of how things worked before complex technologies were used. The fundamental process of investing has not changed over time, says Barry Hurewitz, international head of UBS Evidence Lab, a major provider of large data sets. Investing will continue to be an information processing business that requires analyzing competing points of view – from analysts, investors and corporations – and drawing sound conclusions based on them. “The core of the work you have to do to make investment decisions has not changed,” Hurewitz told Business Insider. He added, “What is changing is the amount of data that needs to be processed and the availability of that data.” Just as the data and AI technology that…