How do you invest in artificial intelligence? These are expert tips and warnings - All technical

 How do you invest in artificial intelligence? These are expert tips and warnings

AI's Privacy and Regulatory Risks Are Looming

Since the beginning of 2023, artificial intelligence has entered the investment field in a big way, thanks in large part to the emergence of the ChatGPT platform, which has triggered a buying frenzy in artificial intelligence-related stocks.

Despite the current backlash, some analysts warn of the risks of investing in AI.

AI "is here to stay," said Jason Weir, chief investment officer at Albion Financial Group.

"Maybe it's getting a lot of attention these days, mostly because of ChatGPT. But the reality is AI has been with us for years, especially in the context of so-called 'narrow' AI." Will cites Google Maps and Google Maps. Siri” and other technologies.

He expects AI to continue to gain traction in the "money-making" business in the long run.

Weil said that the development of artificial intelligence, especially machine learning, deep learning and natural learning, will accelerate.

"I hope some of the bigger, higher quality companies will be better off because of innovations in AI."

"High" rating

David Dietz, chief investment strategist at Peacock Private Wealth Management, said investors need to be "extremely careful" because the company's valuation has become "overvalued."

Artificial intelligence stocks have accounted for more than half of the market's gains this year. To put the numbers in perspective, this represents 45% of the new total market capitalization, or $1.4 trillion. One such example is Meta, whose shares have jumped 100% A change this year has led to the company's focus shifting from the Metaverse to artificial intelligence.

"A lot of companies have real plans in AI, but they advertise their performance in AI to boost stock prices and reputations," he said.

He pointed out that "every company is trying to do artificial intelligence now, and competition can drive down the price of artificial intelligence-related services."

Organization and Privacy Issues

There are privacy and regulatory issues in AI that need to be addressed, Dietz said, citing "speech redundancy" as an example, so when you layer government regulation on top of competition, all the extra profit is sucked dry.

Veer, on the other hand, says change is inevitable.

"You either grow with this change or you die. I believe companies can change their business by using artificial intelligence to increase their productivity and efficiency and help them grow. Technology. That's the quality we want . "Core Corporation.

"Regulation is nothing new, anyway," he explained, noting that tech companies "have been under regulation for a long time." AI, not government regulation, as a net contributor to earnings over time.

How do you invest?

One thing Dietz and Weir agree on is that investing in companies that focus solely on artificial intelligence should be avoided.

Dietz is skeptical about investing in AI, but he has advice for those who are still excited: “In a gold rush, people often put money into companies that provide different services. Invest in companies that provide tools for the broader technology sector. "

"For these big tech companies, AI is going to be a small percentage of total revenue and profits, so it's safe even if the returns will be reduced."

On the other hand, Weil said: "Don't invest in companies that are only focused on artificial intelligence, have no profit, and the cost of capital is now high. That's speculation, not investment."