Recent market declines are tough to deal with, but the retrenchment could prove to be a buyer in some compelling, fast-growing segments, such as artificial intelligence (AI). The Global X Future Analytics Tech ETF (NasdaqGM: AIQ) is one of the more compelling ETFs providing access to the sprawling AI market.
The Global X Future Analytics Tech ETF tries to reflect the performance of the Indxx Artificial Intelligence & Big Data Index, which is comprised of companies involved in the development and utilization of artificial intelligence and big data. The underlying index includes those involved in generating vast amounts of data and developing proprietary AI systems to derive actionable insights from the data set.
Underscoring the utility of the AI investment thesis is the multiple day-to-day uses and markets this technology intersects with. Bolstering the AIQ thesis is the myriad AI applications, including healthcare.
“In terms of revenue, the global healthcare artificial intelligence market is estimated to be US$ 3,120 Mn in 2018 and is anticipated to reach US$ 24,700 Mn by 2027 growing at a CAGR of 25.9% over the forecast period,” according to Market Insights.
Seeing All The AIQ Angles
AIQ’s underlying index screens artificial intelligence companies based on the artificial intelligence applied to product services and artificial intelligence-as-a-service for big data applications. Additionally, companies included in the underlying index include companies that produce hardware for artificial intelligence applications and those developing quantum computing.
Artificial intelligence refers to the process of machines or computers performing tasks that would otherwise require human intelligence. AI relies on processing huge amounts of data, or “big data,” to learn. The potential of AI systems is based on the accumulation of big data. Some observers project the emergence of AI could add up to $15.7 trillion to global GDP by 2030.
Other data points support the notion that AI is a game-changer and a rapidly growing market.
“The global artificial intelligence market size is expected to reach USD 390.9 billion by 2025. The market is anticipated to expand at a CAGR of 46.2% from 2019 to 2025,” according to Research and Markets. “Artificial intelligence (AI) is considered to be a revolutionary technological development and its integration across a host of applications is one of the key factors driving this market. Advances in image and voice recognition are driving the growth of the regional market. Improved image recognition technology is critical in enhanced drones, self-driving cars, and robotics.”
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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.