Artificial Intelligence (AI) is touted as the latest in a long line of investment golden eggs.
In years gone by, there have been a number of new trends, latest fads and fleeting fashions. In the world of investing we’ve lived through the dotcom boom, bust and recovery. We’ve also seen more than one property market crash.
But, with AI’s ability to penetrate into all economies and pretty much every industry, it’s one that has real scope to be an investment that will return on its promises.
Why Has AI Become So Popular?
According to a 2016 study by global services firm Accenture, AI is predicted to double economic growth across the world’s 12 most developed countries, by 2035.
Specifically, Accenture estimates AI tech could add $8.3 trillion to the US economy in less than 20 years. The way it’s anticipated to happen includes:
- Through multiple industries.
- Automation of some jobs.
- Increased productivity and output.
- Giving ‘human workers’ more freedom to concentrate on other roles that are more economically valuable but less viable for AI automation.
Other research and commentary, supports much of Accenture’s assessments. A report from PwC suggests that while automation may result in job losses in some areas – transport, manufacturing and retail – they will lead to the requirement of other, more skilled roles elsewhere.
“By boosting productivity – a key UK weakness over the past decade – and so generating wealth – advances in robotics and AI should also create additional jobs in less automatable parts of the economy as this extra wealth is spent or invested,” PwC’s chief economist, John Hawksworth.
How to Invest in AI
As with any new investment idea, it always pays to be diligent, cautious and never invest more than you’re comfortable with. A financial service firm like CBS-CBS.com will be able to offer you guidance on the latest market conditions. However, just as AI tech is a relative newcomer to the world of popular investing – Crowdfunding is a disruptor in the investment world and could offer the perfect way to get a piece of the AI profit, without dipping your toe too far into unknown waters.
Crowdfunding provides a great way for start-ups to raise the funds they need for their first, second or even third steps into developing their product, service or brand.
The beauty of Crowdfunding is that you typically invest directly into a company (via the third-party Crowdfunding platform) in return for specific rewards. What those rewards are, depends on how much you invest.
So, if you want to test the waters you can invest a very small amount in return for the product or service in the future. But, if you’re convinced by the pitch and are keen to take a slightly bigger risk, then you could become a shareholder, in return for future profits.
Of course, there’s still the mainstream investment option on the stock market for bigger AI businesses. But, in the case of AI, much development remains in the hands of smaller, innovative tech start-ups.
That offers investors the opportunity to get in early and either retreat if things don’t go well, retain your initial investment for a longer period. Or, where success is imminent and more seems likely, you could increase your investment – but only by as much as you want to.
Try a New Investment Path
Trying something new is always daunting.
But, if you like what you hear about AI and are keen to get in at the ground floor of ‘the next big thing’, then investing in an AI start up through a crowdfunding platform could be the perfect option.