It’s one thing to implement disruptive technology, but it’s another thing to understand it—especially in the case of business owners and executives. This is what industry expert Larry Pizette, the head of data science at Amazon’s Machine Learning Solutions Lab, suggests.
Implementing the technology like artificial intelligence (AI) and machine learning can allow businesses to reap major benefits, but it’s not a simple one-size-fits-all solution. In additional the engineers, business executives must also be able to learn about the technology itself.
“The part that I think gets missed frequently is teaching the business folks, because people always think about the data scientists and the software developers learning about these skills,” said Pizette. “The business folks need to learn as well.”
Per a VentureBeat report, executives “are used to purchasing software systems, but AI is not like traditional systems. Rather than purchasing a static solution that does job A or B, a machine learning component of a business strategy is more like purchasing a process or a way of thinking about a business challenge. And it requires ongoing input, tuning, and training.”
“With machine learning, it’s a little bit different for business owners,” said Pizette. “Let’s say you’re predicting home purchases, but interest rates change. If your model is trained on some assumptions and now something changes in the future, you have to retrain your model. So training the business folks so they understand what they’re getting into and how to best procure it, I think is super important.”
As more owners and executives understand the disruptive solutions they’re implementing, this can only help drive growth in the space. As such, ETF investors can take advantage of disruptive tech funds.
For broad exposure, investors can look at the ARK Innovation ETF (NYSEArca: ARKK). ARKK, an actively-managed ETF, seeks to provide investors with exposure to innovation—thematic multi-cap exposure to innovation across sectors.
Another fund to consider is the SPDR S&P Kensho New Economies Composite ETF (NYSEArca: KOMP).
Fund facts:
- The SPDR S&P Kensho New Economies Composite ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho New Economies Composite Index (the “Index”)
- Seeks to track an index utilizing artificial intelligence and a quantitative weighting methodology to pursue the potential of a new economy fueled by innovative companies disrupting traditional industries by leveraging advancements in exponential processing power, artificial intelligence, robotics, and automation
- May provide an effective way to pursue long-term growth potential by targeting companies within the sectors driving innovation within the new economy
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