How to invest in artificial intelligence

While there are few pure-play options and valuations are high, experts say it’s wise to pick your spots now.

Bryan Borzykowski 10 November, 2017 | 6:00PM

There's a heated debate among the tech elite about whether artificial intelligence will destroy or enhance human life.  Tesla (TSLA) founder Elon Musk has been sounding the alarms over AI for months, saying in September that AI will be the cause for World War III.  Facebook (FB) founder Mark Zuckerberg, meanwhile, counters that AI will be a benefit to the world.

While it could be decades before we know who's right, the fact that two tech giants are talking so passionately about AI means one thing for investors: This market is going to be huge. According to research published by Statista, global AI revenues are expected to jump from about US$2.4 billion in 2017 to nearly US$60 billion by 2025.

What qualifies as an AI stock? At the moment, AI is a mostly catch-all phrase that people use when talking about automation, robotics, big data and other tech-related innovations. In some ways, AI is all of the above, but the growth market is in the more advanced AI, much of which hasn't yet been implemented. Examples include self-driving cars, predictive analytics, robots doing office work, and more.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc Class C1,465.46 USD2.40
Amazon.com Inc3,128.99 USD5.69
Apple Inc111.81 USD1.57
Facebook Inc A254.75 USD2.66
Intel Corp49.95 USD0.46
International Business Machines Corp120.51 USD0.22
Intuitive Surgical Inc666.02 USD3.75
Microsoft Corp207.42 USD2.41
NVIDIA Corp505.51 USD0.96
Qualcomm Inc113.82 USD1.70
Tesla Inc424.23 USD-5.60

About Author

Bryan Borzykowski

Bryan Borzykowski  Bryan Borzykowski is a Toronto-based business and investments writer. He’s contributed to the New York Times, CNBC, BBC Capital, CNNMoney and several other publications. Bryan’s also written three personal finance books and appears regularly on CTV News.

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