There are plenty of headlines about how artificial intelligence (AI) is transforming everything from smartphones to our cars, but understanding how exactly to benefit from AI as an investor can be a little harder.
AI encompasses a lot of different technologies, like natural language processing (when Google Assistant understands what you’re saying), machine vision (semi-autonomous cars knowing the difference between a lamppost and a pedestrian), and even suggesting the next show you should watch (although if an AI suggests HBO’s Westworld, you should be suspicious). All of these examples are more than just algorithms that make decisions. They’re computing systems that actually learnwhile they’re working.
To help you get started in your AI investments, here are five things you should know before jumping into the space.
1. Know what it’s worth
Markets and Markets estimates that AI will be worth $16 billion in the U.S. by 2022. The research firm expects AI to grow at a compound annual growth rate (CAGR) of 62.9% between 2016 and 2022. If you look at the entire global AI market, Tractica estimates that it will skyrocket from $643 million this year to $36.8 billion by 2025.
2. Understand the risks
No, I’m not talking about an intellectually superior robot army (although that would indeed be a risky situation), but rather the more practical problems facing the segment. AI systems are going to make mistakes, and that could cost companies — and people — a lot.
For example, the BBC reported earlier this year that a company created medical AI software to learn which patients with pneumonia were at a higher risk of death. But something went wrong along the way …
Read the source article at Madison.com/fool.com.