Artificial Intelligence and Investments – Are they linked?

At the current rate that technology is advancing, it will only be a matter of time before jobs will be replaced by artificial intelligence. Using driving as an example, it’s a hands on task where drivers have to stay alert in order to operate the vehicle. But today, we already have semi-automated vehicles available for consumer purchase such as the Tesla range of electric vehicles. Its onboard computers and cameras work together to stay in lanes on the motorway, controlling speeds, watching for hazards etc. The car basically operates itself on the motorway, allowing the driver to relax. Delivery companies have already began tests on automated fleets of lorries, allowing them to transport goods from A to B without a driver, all while staying in a safe convoy formation that allows the lorries to save fuel by reducing drag the way riders in Tour de France tuck in behind one another to conserve energy. That’s more efficient than if individual lorry drivers were operating these lorries.
Artificial Intelligence is the way forward, and countries such as China and the U.S. agree. The Government of Beijing recently invested $2 billion into building an AI development park in the city, and aims to surpass the U.S. in terms of AI leadership by 2030 with an AI industry worth $150 billion. Global tech giants have also began investing in AI, with companies such as Amazon, Microsoft, Google, NVIDIA & Nuance taking the lead. Google spent £263 million in 2014 to acquire DeepMinds, completing one of the largest AI acquisitions to date.
People are not just investing in AI, but are also using AI to assist them in managing their investments. According to Campbell Harvey, professor of finance at Duke University, AI will be a good thing for investors if human judgement is overtaken by what computers can predict. Fund management companies such as Fidelity and Vanguard use AI but were not inclined to answer when asked in detail, whilst BlackRock says they use AI to assist them in tasks that require heavy cognitive function.
Artificial Intelligence powered Exchange Trade Fund founder Art Amador says that artificial intelligence surpasses humans in jobs like these because it does not have the physical, emotional, and psychological weaknesses that humans have.
With Artificial Intelligence rising up the ranks so quickly, we have invited speakers in the private capital industry to share their thoughts and opinions regarding the matter, and what they think the future of investments will be with AI. Join us at the EnRoute Private Capital Meeting on 28 March 2018 in Kuala Lumpur, Malaysia to engage in thought-provoking debate and network with industry professionals. Other topics that will be covered include private equity middle market opportunities in the SEA region and Family Offices’ allocations into private investments. Click here to find out more details about the event.
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