Time to invest in AI and Machine Learning?

27th Nov '20 by turbo

20 comments 1326 reads

AI (artificial intelligence) works by simulating human intelligence processes such as learning, reasoning and self-correction. Machines are able to learn from experience and are able to adjust to new inputs and perform human-like tasks. They constantly improve in their ability to 'learn' from mistakes and change how they approach a given task the next time they try it.

AI is proving useful, and sometimes transformative in many sectors – healthcare, finance, education and entertainment. Some example of applications include Netflix using AI to track and analyse viewer watching habits and recommend shows relevant to the individual. Another example is the use of AI to make video games more challenging by studying how a player behaves. Home assistants such as Alexa and Siri also employ AI to make them work.

I have only started looking into AI and machine learning and have made little progress thus far. Some candidates that fall into this sector might be £prsm, £tpx, £alb. £jwng, £atqt, £ecsc, £ind, £renx, and £sens – I’m sure that there are many others out there. I think it goes without saying investing in the right AI company now could provide one with substantial rewards.

I'm hoping members with more knowledge of this sector will spare some time and comment to share their insights, and help me in my goal of identifying an AI company that that decide to invest in....

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Alphaflight

27th Nov '20

The leading AI company in the world is Deepmind, they are based in London. They created AlphaGo, AlphaGo Zero et al. I used to work closely with AI, Deepmind are eons ahead of anyone else.They are owned by Alphabet Inc (AKA Google).

https://deepmind.com/

underscored

$PLTR

john2

I'm no expert in this area, but I thought OpenAI's GPT3 was now the pre-eminent AI system. It makes its decisions based on the entire content of the internet.

No, Deepmind are the only game in town, the rest of these small AI companies are probably noise. Google essentially have an unlimited budget pointed at Deepmind, the "Alpha Go Zero" algorithm is unmatched.

The Phoenix

Smith and Williamson have an artificial intelligence fund if you want to research further

turbo

Had a quick look, the SP has gone from around 10 to 30 since the beginning of November

Thanks for the replies, all useful in helping me to understand this sector better

Wilbraham

I imagine you're greatly limiting yourself if you stick to UK quoteds. There are several AI/Robotics ETFs eg see https://www.investopedia.com/i... I hold some iShares £RBTX

Looking Eastwards, you might also look at Kraneshares KFVG though there may be too much 5G focus for your liking, though the presentation has the comment

''China surpassed the U.S. in terms of AI chip patent innovations for the first time in 2019.
• China holds a competitive edge, in part, because of its
huge population size and ability to do large-scale tests of
its AI technology in everything from pharmaceutical
research and development to meal delivery''

This probably reflects Tianjin's $16bn initiative https://www.reuters.com/articl...

Pivoting back to home, Draper Esprit (LON:GROW) has a decent slug in Graphcore though I wonder if $NVDA is getting a jump on them.

Bear in mind of course that with some offerings, eg $GOOG the AI business is just one of many profit centres. Perhaps there aren't all that many pure AI plays after all?

Potentially exciting times!

I think you make a very valid point Wilbraham. Had a quick look at the chart for some of the ETF's, and they all look pretty impressive (eg, Ishares Trust, IRBO) . Am definitely going to explore further.

Help, can't see any options to edit my posts, or give a thumbs up. Here's a link to the ETF I mentioned: https://www.investopedia.com/m...

28th Nov '20

Just managed to figure out the answer by switching to the old site - it appears there is no option to edit posts or give a thumbs up on the new site.

Mike888

Word of advice, don't confuse AI with simple script/capture automation software, eg PRSM, it is most definitely is not a native AI solution, although it's RPA capabilities could integrate with AI solutions.

cafcash49

11th Dec '20

I suggest you look at the shadowfall site before considering (PRSM)

jmallin1972

How do you switch to the old site

Banzii

Click on the little silhouette up in the top right. It's one of the options there.

Laughton

But I don't think you are able to switch to the old site if you're a fairly new subscriber.

MiserableJacktPotato

12th Dec '20

I think you’ve misunderstood AI, it doesn’t (yet) simulate human intelligence processes. Mostly all it does is process a series of logic gates, “if (this condition) | do that”.

I personally have many issues with the way it dehumanises thoughts, not replicate them but that’s starting from the point - there’s undoubtedly plenty of investment in this area and I’m really enjoying the thoughts people are sharing. Thanks for posting an interesting topic to discuss

”starting” should be “straying” though it unintentionally reinforces my point, if the iPhone hadn’t tried to correct me we’d all know I’d made a typo.

Gdawgeedawg

31st Dec '20

Sorry late to the conversation here. I work in the technology sector as an engineer and a manager. "AI" is significantly more hype than actual value add and most engineers in the industry roll their eyes at the mention of it. It got popular the last few years when people discovered you could code neural networks and other "machine learning" algorithms with easily accessible programming languages such as python. The tech has proved fruitful for matching adverts with customers - think Google or Facebook advertising tailored to your interests. This is the money maker from AI like technology. There's a host of other applications, Deepmind was mentioned by someone, self driving cars, robotics, applications in the military domain. A lot of the applications are rehashes of technology that already exists (think autonomous weapon targeting systems). Thing is the profitability or value of the new technology doesn't match the hype outside of advertising. Sorry to be a killjoy but my opinion is to stay away from the sector as it's flooded with promise and very little in the way of value-add delivery.

2nd Jan '21

Thanks for your input Gd. Certainly not seeing your comment as killjoy, only too happy to learn from others and hopefully make better investment decisions in 2021!

Time to invest in AI and Machine Learning?

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Turbo

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