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
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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 C2,841.13 USD-0.25Rating Inc3,417.00 USD0.06Rating
Apple Inc149.04 USD-0.14Rating
Facebook Inc A338.53 USD-0.66Rating
Intel Corp55.30 USD-0.13Rating
International Business Machines Corp133.10 USD-6.20Rating
Intuitive Surgical Inc339.78 USD-0.01Rating
Microsoft Corp306.73 USD-0.22Rating
NVIDIA Corp221.58 USD0.25Rating
Qualcomm Inc131.73 USD-0.33Rating
Tesla Inc868.89 USD0.36Rating

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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