For many years, artificial intelligence has been under research. However, in recent months, so-called generative AI, most notably Open AI’s Chat GPT and DALL-E products, has generated a great deal of interest from investors who think it might also lead to enormous financial gains.
Participants in the MLIV Pulse survey had mixed opinions on whether these technologies were worthwhile investing in. Only 12% of investors reported using artificial intelligence in their businesses, and only 27% said they planned to do so. More than half of those surveyed stated they haven’t even thought about utilizing AI to aid in their investment decisions.
Video Courtesy: Bloomberg Quicktake
This stands in stark contrast to previous market rallies for businesses related to advanced AI, which were partially sparked by the massive media coverage of Chat GPT and Microsoft Corp.’s $10 billion investment in Open AI, its developer. The stocks of businesses like BuzzFeed Inc., C3.ai Inc., Sound Hound AI Inc., and BigBear.ai Holdings Inc. have all experienced astronomical increases in volume as well as wild changes in their share values.
Businesses and investors are competing to establish themselves as the go-to names for technology that can generate media such as text and pictures from straightforward prompts or hold human-like conversations on a range of subjects, from whether a cat would defeat an eagle to practical considerations about current events or school projects.
Microsoft is competing with companies like Alphabet Inc., Meta Platforms Inc., and Amazon.com Inc. to provide the best AI tools to as many people as possible. Even said, just 49% of respondents indicated they intended to purchase equities with exposure to such generative AI tools, leaving some investors with unfulfilled desire in the wake of the promise of tools like Chat GPT. Over the following six months, 38% of respondents indicated they would maintain steady, while 41% said they wanted to increase their overall exposure to IT stocks. This is in spite of the median forecast’s prediction that the Nasdaq 100, which finished on Friday at 12,573.36, will decline to 12,000 by year’s end.
Itu2019s likely that investors are waiting on a final selling frenzy to buy.
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