Artificial Intelligence is one of the most exciting fields of Science, Technology and Economics which has the potential to transform the era, though finding the best alternative is not an easy task. The evolution of artificial intelligence in the business world is termed as the Fourth Industrial Revolution. Investment in ML and AI first came up in trend in the 1950s, and now, the AI and economy mixture can release the surge of spending.
The investment is getting more incentives because of new tax rules. How? The higher wage cost is increasing the driving capital cost of expenditure to improve the efficiency of the business in the global market. The demographic nature is another type of motivation. Many countries are facing challenges of labor shortfalls in the developed world. By the year 2050, the US will likely to face the shortfall of 18 million workers.
How to invest?
The first step is, Automated trading
From a few years, a gradual shift is faced by the companies because of AI and machine learning techniques. By the help of these techniques companies are becoming more intuitive and predictive; which facilitates in faster decision making process. In fact, some companies are already into the applications of AI, and the other remaining will be the part in a couple of years. To become part of this voyage one can enroll into Artificial intelligence course for in-depth knowledge such that they remove the barriers of success.
AI has the potential to give the insights of data and to automate the low-value monotone tasks. All of these can be very beneficial for the investment management to seek the right and best option for the investors. The term “Automated trading” is not a new term in the market. Top investment banks are taking leverage of algorithmic tool from many years and executing the trade plans on the basis of pre-defined criteria. Marketers, traders have found the methods to save the time and money and also, ways to reduce the market impact on the company with the help of smart algorithms under certain situations.
Traders have always implemented the machine learning algorithms, tools and the use is high as management of other relations like a relationship with brokers, evaluation of trading tools and objective match of management.
The second step, Commercialising AI technology
Although, it should be the first step. Generally, investors are searching for the automated companies which use the core technology for the supply of raw material because they find it more beneficial, as per opportunities which might help in enhancing their primary business.
But before anything, a simple advice for first-time investors, start searching for the AI ecosystem, its key values. In short, gain exposure. Industries which supply raw material to the core AI technology are involved in data processing. It means they need Cloud data centers, Supercomputers also the other data related pools. Only the companies which have data expertise will be able to provide the opportunities. Also, the companies which are involved in sensing and control systems. It doesn’t mean a company which is making Smartphone is also having a processing power. Companies which are using advanced AI in the best way will also be the company which is getting the most benefit from new technology. So, to predict which will be better is a difficult task. The investor needs to think and take actions strategically and then invest in the new advanced technology.
The new trend choice is: AI investment
Nowadays, industries are investing in AI for the growth and to improve the customer services as per the Constellation research 2018. It shows that the highest number of investors are adopting AI in the departments of sales and marketing, customer service/commerce and in employee productivity.
AI has the potential to drive the competition and to take advantage. After the reign of Blockchain possibilities, now AI has begun dominating on the industries and conference agendas. If the machine becomes smarter than humans then what will be its impact on the business.
AI is widely accepted in the investment management because of the decision-making and problem-solving capability. It has achieved an astounding place in other fields, but we believe that it will make the same place here as well. Asset managers were the responsible person for hedge funds, and for the portfolio decision making but this process can be automated by implementing AI. However, this section is more complex and fragmented if compared to the banks and exchanges, that’s why it may take more time in transformation.
Bottom Line:
AI, ML and automation are the most trending topics and the medium behind the growth of the companies in the market. Although, the trading companies are already automated but bringing Automation in the field of investment is a complex thing. The market is changing with every second so the yesterday’s plan won’t work for today’s task. Investors should keep in mind the basic principle of investment that is to remain updated about the current market value.
