Investors bet on artificial intelligence

An algorithm. (Photo: dpa)

An algorithm. (Photo: dpa)

Patricia Uhlig from Reuters analyzes the importance of artificial intelligence for investors:

Whether Apple & # 39; s voice assistant Siri, self-propelled Uber taxis or targeted clothing proposals at the online fashion store Zalando – IT systems for learning and networking have become indispensable in daily life. According to experts, artificial intelligence is a growth market of trillions of dollars for companies. Investors expect high returns from the trend – the demand for specific funds and certificates is high.

"As far as institutional investors or family offices are concerned, we see a fairly strong interest in artificial intelligence as an investment theme", says asset adviser Thomas Metzger of Bankhaus Bauer. Private investors, however, are more reticent. "The area is probably too special and difficult for normal investors to access." Many Germans are worried about the development of intelligent computers and robots, as is apparent from a survey by PricewaterhouseCoopers (PwC) from August 2017. Fifty-one percent of the respondents admitted to be a little afraid of development, especially with regard to the possible consequences for the labor market.

Nevertheless, fund and certificate providers are experiencing rapid growth in specially designed products. The Global Artificial Intelligence fund of Allianz Global Investors, for example, raised over € 1 billion in one and a half years and gained about 28 percent in that period. The Global Robotics fund launched by Credit Suisse since mid-2016 is already more than twice as heavy. The fund is also by far the largest theme fund of the Swiss bank. According to the asset manager, DekaBank is also a strong supporter of the Industry 4.0 fund, which mainly invests in manufacturers of electrical appliances, chip manufacturers and software companies.

Companies, artificial intelligence (AI) offers enormous growth potential in the eyes of professionals. It not only promises bag costs, it also creates completely new business areas. The PwC experts expect the global gross domestic product to increase by 14% by artificial intelligence by 2030, or by an additional $ 15.7 trillion. Gartner's market researchers estimate that the total value of companies with AI-based business models more than trebles from 2018 to 2022 to $ 3.9 trillion. It is predicted that more than half of all companies will use KI this year in one form or another. "The change is unstoppable", emphasizes Professor Gregory Wheeler of the Frankfurter Schule in Frankfurt. "Artificial intelligence will change many aspects of daily life."

The music mainly plays in the US and China. The funds have invested the largest part of the customer money in companies located there. Allianz fund manager Sebastian Thomas, for example, relies on the chip manufacturers Nvidia and Micron, the electric car manufacturer Tesla, the IT giant Oracle or the Chinese search engine operator Baidu. Credit Suisse's Robotics Fund includes US companies such as sensor manufacturer Cognex and automation technology specialist Rockwell, as well as German automotive and industrial suppliers Duerr and Gea Group. Especially interesting for investors are large companies from the internet and IT industry – also because they had bought startups in the past year, which would have an AI based business model, says investment strategist Ulrich Stephan of Deutsche Bank.

Anyone who wants to invest in the trend, however, needs wear-resistant nerves and a long breath. "Actually, you always have to be careful with so-called mega-trends," says Metzger from Bankhaus Bauer. Allianz also warns in his prospectus for the AI ​​fund of possible price falls. For example, the fund lost nearly six percent in the past six months, while the US technology index Nasdaq gained 14 percent in the same period.

Read more about this topic in the DWN Tech Report.

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