AI: The great acceleration

By Tom Deacon, Senior Investment Analyst

Last year OpenAI set the world on a path of great acceleration, driven by rapid evolution and broader adoption of AI. Generative AI is the most significant tech innovation since the internet, and such large paradigm shifts bring disruptions that offer investable opportunities.

AI has been a transformative force for a while (remember when Netflix content recommendations started working properly? Thank deep and wide neural networks!). In 2023, AI’s endless algorithms and chip hardware became increasingly sophisticated, leading to more efficient data processing and usable output for decision-making. We expect 2024 to be an inflection point for AI with business broadening its integration - enhancing productivity and creating new opportunities in Research & Development

The development of AI ethics and governance frameworks is also important for ESG-concerned stakeholders, like us. Data privacy and algorithmic biases are among issues in play. While there are certainly risks, AI can also help stakeholders to assess impact (and risk).