Artificial Intelligence (AI) technology has come a long way since being coined in 1956. AI has become popular today due to the increased data volumes, improvements in computing power and storage, and advanced algorithms. The goal of AI is to use real-time data to simulate human intelligence.
How Does It Work?
AI works by combining large data sets with processing algorithms and these algorithms can be manipulated by learning behavior patterns within the data set. AI is not just one algorithm, but rather an entire machine of algorithms that can solve problems and suggest outcomes. There are five steps to AI: input, processing, data outcomes, adjustments, and assessments.
Benefits
There are four major benefits to the use of AI: reduced human error, help in research and data analysis, unbiased, smart decisions, and performing repetitive tasks. AI reduces human error by helping us understand all possible outcomes and then choosing the most appropriate option. All alternative outcomes predicted are used from real-time data. That way, we can better understand the options given, the results, and its impacts of the outcomes.
Helping with research and data analysis is crucial, as the data collected through AI can take significantly less time than a human. Having the most accurate information and data sets removes any potential bias in the decision-making process. When given the best data, AI can accurately solve problems, predict outcomes, and properly perform functions without human favor of a desired outcome.
AI can perform repetitive tasks, like employee onboarding, to give employees more time to work on other complex matters. AI has been integrated into websites, through chatbots, to jump-start the process and move clients through the pipeline.
Investments in AI
Investments in AI have spread across the globe. In 2021, the annual global corporate investment in artificial intelligence was more than $250 billion, compared to $150 billion in 2020. The largest single investment was the acquisition of Nuance Communications, acquired by Microsoft, and was valued at $19.8 billion. Microsoft has also invested a total of $10 billion in ChatGPT, owned by OpenAI. First State holds a significant portion in Microsoft (MSFT). For a free consultation with experienced financial advisors, contact us at (918) 492-1361.
This overview is for informational purposes only and is not a recommendation. It should not be the sole deciding factor in making an investment. Investing is a risk, and, as with all risks, a positive return is not guaranteed. Past performance does not indicate future results.