The Economic Impact of AI Projected to Be Over $14 Trillion
Artificial intelligence or AI, was once just a figment of the imaginations of some of the world’s most famous science-fiction writers.
But this technology is taking root in virtually every aspect of our daily lives.
It’s in our smartphones, computers and even in our cars.
Google’s search predictions, Netflix’s personal viewing recommendations, image classifications on Pinterest, face recognition on Facebook, and voice recognition — such as Apple’s Siri — are all examples.
Another segment is on the verge of being at our fingertips in the form of self-driving cars.
In short, all these forms of technology that were once the work of science fiction are quickly becoming reality.
That’s going to creates some incredibly exciting and profitable opportunities for investors if they know where to look…
The Birth of a New Tech Boom
The economic impact of AI is going to be huge.
A report from Bank of America/Merrill Lynch estimates that it “will yield $14 trillion to $33 trillion in annual economic impact by 2025.”
McKinsey & Company, a respected consulting firm, reports that it will produce a whopping $50 trillion worth of economic value through 2025.
To put that figure into perspective, that’s 18 times bigger than the market for smartphones, tablets and PCs combined!
I’m bullish on a major tsunami trend, but it’s too early to tell which company will be the ultimate winner in this rising sector.
There isn’t one stock that jumps off the pages at me right now, but it is an area that I will be watching closely for opportunities when it comes to my newsletter. The newsletter will be launching later this year.
But that doesn’t mean we have to wait on the sidelines to start raking in some profits.
Easy Access to AI Exposure
One way to take advantage of the huge windfall that’s about to hit global economies is to invest in exchange-traded funds (ETFs).
ETF represent a basket of stocks that typically represent a particular sector or group. They offer exposure to an entire sector without having to choose a specific company or companies to invest in.
And to invest within the AI sector as a whole, your best option is Robo Global Robotics & Automation Index ETF (NYSE: ROBO).
The ETF has 29 holdings including Flir Systems, Rockwell Automation, Nvidia and iRobot. While some of the companies should do well in the coming AI surge, others will struggle.
Over time, this ETF should continue marching higher from the growth of this exciting new trend. I will keep you posted on potential opportunities within this growing sector as a clear winner starts to climb to the top of the heap.
Senior Analyst, Banyan Hill Publishing