The wealth manager’s view
Robert Alster (pictured left), CIO, Close Brothers Asset Management
The popularity of ChatGPT has spurred a huge amount of speculation about the next phase in AI and what it means for our societies, economies and livelihoods.
The online chatbot’s growth has been spectacular, attracting a staggering 100 million users since the start of the year. To put that in context, it took Facebook almost five years to hit that milestone.
We now see a number of other big players looking to develop their own versions of ChatGPT, along with other AI projects, with potentially huge implications.
Those big players, such as Microsoft, Meta and Alphabet, have been active in AI for years, and have an advantage due to the vast amounts of data they have access to. It is likely many investors will already have some exposure to these companies.
You can also make money, however, from selling the ‘picks and shovels’ – that is, the companies that will support the development of AI and its wider ecosystem.
That development will require more computer power, servers and data centres and it should spur further growth in cloud computing and the manufacturing of advanced semi-conductor chips.
Investors don’t have to put money directly in AI companies to benefit from the growing trend.
There is a whole wider world that underpins AI – though it is not a one-way bet on what is still a relatively unproven technology. In the fullness of time, we will see the true leaders in AI emerge – but it is still too early to tell who this will be.
