Investing Artificial Intelligence
The revenues from the artificial intelligence for enterprise applications market worldwide is expected to exceed $31 billion by 2025, from $1.6 billion in 2018. Venture capitalists have multiplied by 6 their investments into AI start-ups since 2000 and during that same period the number of AI star-ups have multiplied by 14.
If you would still like to get exposure to that market without investing in start-ups or finding a competent fund manager, a simple way to do it is to invest in an ETF that tracks the AI market. According to ETFdb.com, AI ETFs are funds that meet at least one of the following three criteria:
- They are funds that specifically invest in companies involved in the development of new products or services, technological improvements in scientific research related to artificial intelligence, or
- They are funds that have at least 25% of portfolio exposure to companies that spend large amounts on artificial intelligence research and development (R&D) expenses. Examples of such companies are Amazon, Tesla Motors, Apple and Alphabet, or
- They are funds that use artificial intelligence methodologies to select individual securities for inclusion into the fund.
Here is a list of the main AI ETFs traded in the US:
Thanks to ETFs, investment in very targeted sectors has never been easier and the AI market is no exception.