In the growing lexicon of disruptive technological advances and investments, artificial intelligence (AI) and robotics are two of the most credible and compelling. The ARK Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ) is one of the ETFs best suited to capitalize on those themes.
What makes ARKQ increasingly relevant in today’s investing landscape is that it features a harmonious approach to accessing automation and innovation whereas some rival funds emphasize one, but not both of those concepts. Additionally, automation often gets a bum rap because it’s seen as a jobs killer, but the opposite could prove true over time.
“Artificial intelligence (AI) and robotics, together, is the augmentation and imitation of human activity and behavior to increase output or efficiency,” according to a recent report by Nasdaq Global Indexes. “Driven in large by technological advancements and an increase in implementation and demand, these burgeoning fields have both gained a lot of attention in the last few years and are now playing an ever-increasing role in our daily lives, helping to solve some of the problems that our world faces, and to make the future a better place.”
Big Growth Is Coming
Automation software is now able to connect the entire manufacturing process from project creation to equipment maintenance. Enabling industrial equipment to sync with management software gives managers the ability to make decisions quicker and more efficiently to ultimately produce a better result for the business.
Robotics, AI, machine learning, or any other type of disruptive technology will be the next wave of innovation.
“Separately, AI and robotics are fundamentally different and can be used for a variety of purposes. Robots are programmable machines that can carry out routine tasks semi-or-fully autonomously,” according to Nasdaq. “Artificial intelligence, on the other hand, is the development of computer models to complete tasks that would otherwise require human intelligence.”
Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion. For example, AI is gaining widespread attention for its ability to be a disruptive technology that spans across a variety of sectors.
According to Nasdaq: “In 2019, the global robotics market was valued at around ‘$34 billion and is expected to register double-digit CAGR over the forecast period of 2020-2025,’” according to Business Wire. “Additionally, the sector is expected to grow ‘exponentially” over the next five years, as a result of “cost reduction, improved quality, increased production, and improved workplace health and safety.’”
For more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.