The tech industry is not the only sector focused on developing artificial intelligence; financial markets worldwide are also sitting up and taking note, as evidenced by the surge in AI investments. As of July 2023, the global AI market carried a value of $142.3bn.
How to circumvent big tech when investing in AI
Experts predict this niche will be worth trillions in years to come. As such, the market attracts more and more investors, and most think tech giants are the answer to getting one’s hands on a slice of the AI share pie.
Although it is true that exchange-traded funds (ETFs) focusing on stocks such as Microsoft and Meta did exceptionally well so far this year, there are other ways to invest in AI. Experts Rich Lee, the Head of Baird’s ETF trading, and Todd Rosenbluth, Head of Research for VettaFi, feel that those who are still diversifying their portfolios should take a closer look at sectors that AI influences – whether directly or indirectly.
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Some of these fields include healthcare, e-commerce, and robotics. In an ETF Edge interview with CNBC’s Bob Pisani, Rosenbluth pointed out that the AI pebble causes a ripple effect that touches industries and uses robotics to realise future goals.
Todd Rosenbluth Source: LinkedIn
To emphasise the reach of AI, he stated:
Even the financial technology space in general is going to be driven in part by AI. It’s going to help advisors do their jobs better, it’s going to help investors sort through information better, it’s going to help processing.
Lee backed up this claim and said:
So, we’re going to see AI creep into other sectors and industries we may not traditionally associate with tech or AI.
