As artificial intelligence (AI) continues to become a transformational technology that is only evolving as time passes, it can only get better, which is good news for boosting the ARK Innovation ETF (NYSEArca: ARKK), which is up 12.67% year-to-date.
“Computers, intelligent machine, and robots seem like the workforce of the future. And as more and more jobs are replaced by technology, people will have less work to do and ultimately will be sustained by payments from the government,” said Elon Musk, the cofounder and CEO of Tesla.
The ultimate goal for AI is to mimic a human’s functions as closely as possible.
Per an article in Venture Beat, “The ultimate goal of AI was always to find out if we could get machines to think like a human, with the understanding that machines should be able handle the analysis of huge data sets far more quickly and effectively than humans ever could. Today, forms of AI have proven to be effective as powerful neural networks and deep learning tools took over the heavy lifting for data processing. Now insights into complex business problems, as well as correlations that would take a human weeks or months to pinpoint (or never be recognized at all), can be delivered in just seconds.”
The technology could come sooner than we think, but there are still obstacles moving forward.
“But the challenge with that is these neural nets, or traditional means of doing data science, have limitations in that they can only tell you the ‘what,’” said Yonatan Hagos, chief product officer at Beyond Limits.. “They look at the data and tell you what’s going on, but what they can’t do is tell you is why it’s happening. For that, you need to add symbolic AI.”
Another ETF to consider is the the AI-Powered International Equity ETF (NYSEArca: AIIQ). Under the hood, the fund runs on the EquBot Model: a proprietary algorithm with the use of IBM’s Watson. The model analyzes and compares a multitude of data points and international companies on a daily basis to find and optimize portfolio exposures.
AI continues to disrupt the investment management space, prompting many asset managers and investors to rethink the way they invest, research and develop portfolio construction methodologies. EquBot recognized this need for advancement and broke the mold by pioneering a new method combining AI with ETFs.
Whether society is ready for it or not, robotics, AI, machine learning, or any other type of disruptive technology will be the next wave of innovation. For investors who missed out on the bull market run of FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks, they can look to capitalize on disruptive tech options in 2019 and beyond that.
For more market trends, visit ETF Trends.