Amid the considerable hype around AI and its seemingly endless possibilities, the technology’s proponents and critics alike can be prone to embellishment – making the extent of its investment potential difficult to ascertain.
“Revolutionising”. “Unbiased”. “Productivity gains”. “Impersonal”. “Unethical”. “Make humans obsolete”. All these and more have been attributed to artificial intelligence. Perhaps with the exception of social media, few technologies are so polarising in modern society. Beneath the marketing puffery and critical naysaying though are potentially lucrative returns on investment for businesses and individuals. Like all investments, a balanced approach is crucial to success – considering all sides, weighing various potential outcomes, and then parking money where it is strategically most valuable.
The opportunities
Opportunities to derive investment returns from AI, as they stand today, can generally be grouped into four main areas:
The practicalities
When assessing any investment opportunity, it is important to factor in individual risk appetite and assess the contextual realities that will impact upon its financial performance in the years to come. Looking at AI, the foreseeable realities are rapidly evolving – a furtive ground for uncertainty and hence risk. Among them are:
The verdict
Weighing up both sides demonstrates that there may be substantial scope for investors to capitalise on AI, deriving healthy financial returns in years to come. Yet it is not a guaranteed cash cow, nor should it be used to outsource investment decisions. Whether AI is being considered as an investment option in its own right, another tool in formulating investment strategies, or both – or even neither – common sense, diligent research and a qualified plan remain the pillars of building wealth.
Helen Baker is a financial adviser and author of “On Your Own Two Feet: The Essential Guide to Financial Independence for all Women”.
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