Artificial intelligence (AI)

Investing in AI: What you need to know

Anyone who has the slightest interest in technology and business will know how important artificial intelligence is set to become in the near future. It has already seen a massive surge in recent years and looks set to steadily continue developing as we move forward.

What all this means as a potential investor is that AI is a hot technology sector to think about investing in right now. With most industry experts predicting it to expand even further in the coming years, investing now could provide handsome returns.

How can you invest in AI?

The figures around this sector make it very tempting for investors. In 2018, the global revenue from the AI market was around $8 billion. While that is impressive, the forecasted figures make for even better reading. Come 2025 it is predicted that this annual revenue will have grown to around $90 billion.

The best way for many investors to get involved is to buy shares in AI based companies or those providing AI solutions to other businesses.

Top AI companies

If you are looking for the best companies in this sector to put your money into now, the below should give you food for thought, but as with every investment – each comes with its own risks.

  • Microsoft – one well-known name that has really run with the AI ball is computer giant Microsoft. Much of this has been down to its purchase of Canadian AI firm Maluuba which has the know how to help machines develop much better AI understanding.
  • Alphabet Inc (GOOGLE) – another massive name to be doing well on the back of heavy AI investment is Google. It has made around 20 purchases of AI firms in recent times included Kaggle. With many AI inspired developments in the pipeline, including the Google Lens, it makes this tech company a sound investment.
  • Baidu – if you fancy diversifying into global stocks then this Chinese equivalent of Google is worth a look. With a recent upside of 17%, it has also pumped almost $3 billion into AI research in under three years! It has placed a heavy emphasis on AI to give it an edge over rivals in the Chinese marketplace.
  • Delphi Automotive PLC – self-drive cars are one area that AI will be heavily involved with. British tech company Delphi Automotive has devoted itself to developing self-drive cars and electric vehicles in recent years. This has seen it grow by 30% in 2016 and be well positioned to make the most of any further expansion in the AI sector.

Of course, as with any stocks you invest in, keeping up with the latest news is essential. Most traders will find a reliable news source online like Hammerstone Markets Inc. The free trial of their stock analysis feed is worth signing up for so you always know the latest market reports that may impact your AI based shares.

AI investment looks a sound bet

When you look at how big AI has become in the technology sector, and where many believe it will head, then it is certainly worth considering investing some money now. The big hope for anyone who does so is that they will benefit greatly as AI develops further and the share prices and the dividends rise.

This article does not constitute investment advice – hype around new technologies is fickle and good bets now may lose lustre in the future.

Graphic by Sean Batty