Artificial Intelligence (AI) Continues to Revolutionize Industries in 2024

by Tom Misch
in News
on 21 May 2024

As we step into the year 2024, it is evident that artificial intelligence (AI) holds immense potential to transform various industries. Global Chief Investment Officer at WisdomTree, Jeremy Schwartz, points out that AI is garnering significant attention due to its game-changing capabilities.

Schwartz highlights that major corporations are investing billions of dollars annually in computing infrastructure, emphasizing the growing importance of AI. He notes the emergence of superior chatbots and optimization software, and the potential for AI to increase productivity across multiple sectors.

To capitalize on the potential of AI, Schwartz suggests investors diversify their exposure beyond popular companies like Nvidia. WisdomTree offers a solution through thematic ETFs, specifically the WisdomTree Artificial Intelligence and Innovation Fund (WTAI). By investing in WTAI, investors gain diverse exposure to the broader AI landscape, positioning themselves to benefit from AI innovations.

The WTAI ETF holds investments in 80 stocks, providing more diversification compared to others in the same segment. Notable stocks include ARM Holdings PLC, Meta Platforms Inc, Nvidia, Alphabet Inc., Qualcomm Inc, Micron Technology, ASML Holding NV, Taiwan Semiconductor Manufacturing Co., Ltd, CrowdStrike Holdings, Inc., and Teradyne, Inc.

Examining the performance of similar funds over the past year, various ETFs have showcased positive results. These include Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares ETF (UBOT), Global X Robotics & Artificial Intelligence ETF (BOTZ), Robo Global Artificial Intelligence ETF (THNQ), TrueShares Technology, AI and Deep Learning ETF (LRNZ), and ProShares MSCI Transformational Changes ETF (ANEW).

Moving forward, Schwartz believes that the integration of AI into everyday devices, such as smartphones and laptops, will be a significant development in 2024. This integration is anticipated to become more prevalent in the latter half of the year, transforming how AI is utilized in daily life.

Considering the uncertainty surrounding AI’s future, Schwartz advises investors to adopt a holistic approach to AI investment. By investing in a broad-based fund like WTAI, investors increase their chances of benefiting from the next significant AI breakthrough, whatever it may be.

For investors seeking exposure to the AI wave, WisdomTree’s thematic ETFs provide a compelling option. WisdomTree advocates for a broad approach to AI, embracing adaptability and openness to the numerous possibilities that arise in this rapidly evolving field of technology. By investing in a fund focused on AI stocks, investors not only become part of the current AI revolution but also position themselves to benefit from future advancements.

Image: Artificial intelligence-generated image created by Midjourney.

Additional facts and information relevant to the topic of AI in 2024:

1. Rapid Growth of AI: Artificial intelligence has experienced unprecedented growth over the past few years and is expected to continue its upward trajectory in 2024. The market for AI technologies is projected to reach $190 billion by 2025.

2. Healthcare Impact: AI is revolutionizing the healthcare industry, enabling advancements in diagnostics, drug discovery, personalized medicine, and telemedicine. It has the potential to improve patient outcomes, reduce costs, and facilitate medical research.

3. Cybersecurity Advancements: AI is playing a crucial role in cybersecurity, helping organizations combat sophisticated cyber threats and detect anomalies in real-time. AI-powered cybersecurity systems can analyze vast amounts of data, identify patterns, and proactively respond to emerging risks.

4. Ethical Considerations: As AI becomes more prevalent, ethical concerns surrounding privacy, bias, and job displacement are growing. Ensuring transparency, accountability, and fairness in AI algorithms and decision-making processes is a significant challenge.

5. Data Privacy and Security: With the increasing reliance on AI systems, protecting sensitive data and ensuring privacy becomes critical. Safeguarding against data breaches, unauthorized access, and misuse of personal information are key challenges that need to be addressed.

6. Skills Gap: The rapid advancement of AI technology has created a skills gap, with a shortage of professionals trained in AI and machine learning. Bridging this gap and developing a workforce with the necessary skills is crucial for harnessing the full potential of AI.

7. Automation and Job Displacement: AI and automation have the potential to automate routine tasks and jobs, leading to concerns about job displacement. Adapting to this changing landscape and ensuring worker reskilling and upskilling are important factors in addressing these challenges.

Advantages of AI:

– Improved Efficiency and Productivity: AI can automate processes, analyze vast amounts of data, and make predictions, leading to increased efficiency and productivity in various industries.

– Enhanced Decision Making: AI algorithms can analyze complex data sets and provide valuable insights, enabling better decision-making in areas such as finance, healthcare, and customer service.

– Personalization and Customization: AI-powered systems can personalize user experiences, tailoring recommendations and services based on individual preferences and behaviors.

Disadvantages of AI:

– Security Risks: AI systems may be vulnerable to cyber threats and attacks, potentially leading to data breaches and privacy concerns.

– Dependency on Data: AI algorithms require large amounts of data to learn and make predictions. Relying on biased or incomplete data can result in skewed outcomes and discriminatory practices.

– Job Displacement: The automation capabilities of AI may lead to job losses in certain industries, requiring workforce adaptability and new skill development.

Key Questions:

1. What industries are being most impacted by AI in 2024?
2. How are companies using AI to improve their productivity and efficiency?
3. What ethical considerations and challenges arise from the increased use of AI?
4. How can organizations address the skills gap in AI and machine learning?
5. What steps can be taken to ensure data privacy and security in AI systems?