According to Chat GPT, Artificial Intelligence, or AI, refers to the development of computer systems that can perform tasks that typically require human intelligence, including learning, reasoning, problem-solving, perception and language understanding. While the technology has been developing for decades, the recent release of generative AI tools such as Chat GPT has marked a major step forward by making AI accessible to most people using an interface that can be activated using everyday language.

 

According to Goldman Sachs, AI has the potential to drive a 7% increase in global GDP (approximately $7T) and lift annual productivity growth by 1.5%. AI will require substantial investment in infrastructure, including new semi-conductor factories to keep up with chip demand, more data centers to support AI in the cloud, and new power plants to supply the energy required to power the facilities. While these specific industries will be impacted directly, most industries are likely to find ways to use the technology to improve performance.

 

AI is opening the door to new opportunities across all business sectors with the potential to speed up product development, reduce errors and enhance productivity, improve sales and marketing efforts, and expand profit margins. 

 

For example, pharmaceutical companies and biotech firms can use AI to accelerate new drug development. Programmers are using AI to write code, making them more efficient. Cybersecurity firms can more quickly anticipate and respond to threats. 

 

At Verity Investment Partners, we are using AI-enabled software to more quickly analyze data to help with our research and investment decisions. Our investment team will continue to watch AI development closely as it finds its way into all industries. We believe AI will bring exciting new opportunities for the companies we are investing in, and we are factoring the adoption rate of AI into our company research.