Is Investing In AI Worth In 2024? (2024)

As technology continues to advance at an unprecedented pace, Artificial Intelligence (AI) is increasingly integrated into various industries, revolutionizing how businesses operate and creating new avenues for efficiency and profitability. From healthcare and finance to manufacturing and retail, AI-driven solutions are streamlining processes, optimizing decision-making, and unlocking new insights from vast amounts of data.

With continued advancements in machine learning, natural language processing, and robotics, investing in AI presents a compelling opportunity to tap into a transformative force shaping the future economy. However, as with any investment, thorough research and consideration of market dynamics are essential to identify the most promising opportunities and mitigate risks effectively.

Also, with all the news around AI in the past 12 months, it might seem like an obvious investment option for the future.

Does that hold true, though?

What Do The Current And Future Trends In AI Look Like?

Currently, the global AI market is estimated to be between USD 200-250 billion and is expected to grow ~10x in the next 5-6 years. Currently, the biggest trends in AI are Generative AI, multimodal AI, edge computing, and the rise of democratization of AI. Future trends to expect include Quantum AI, which is AI leveraging the power of quantum computing, Ethical considerations in AI with more laws and legislation being written around AI, and more efficient and adaptable bio-inspired AI.

Who Are The Key Players In The AI Race?

Microsoft + OpenAI – We all know OpenAI’s GPT and DALL-E. In fact, they played a major role in propagating AI from niche to mainstream in 2023. A major reason for OpenAI’s continued contribution to the AI race comes from Microsoft’s massive investment in the company’s generative AI technology. In September of 2023, Microsoft announced the launch of Copilot, integrating the AI capabilities of OpenAI tools into Microsoft’s many products, including Windows 11, Github, VS Code, and Office.
Nvidia – Nvidia stands at the forefront of generative AI by providing the processing power needed to run advanced AI applications. Nvidia was already the frontrunner when it came to the GPU market, but the demand for GPUs for AI applications boosted its market share tremendously in the past year, making it the best performing stock in the US in 2023. In 2023, Nvidia also partnered with many Indian corporate giants, including Tata and Jio, to advance AI globally.
Alphabet/Google – Google has also been in the AI race for a while. It launched Bard (now known as Gemini), a competitor to OpenAI’s ChatGPT early in 2023, and since then have integrated it into its suite of tools, including Youtube. Currently, Google’s AI is integrated into almost its entire product line, including Android.
Meta – Meta has been long harnessing AI for its recommendation algorithms. As one of the biggest names in social media, Meta requires AI for providing recommendations, targeted advertisem*nts, and detecting malicious and unwanted content on its platforms. Meta is also researching AI systems that can supposedly rival OpenAI’s products.

While these are some of the main players in the game, companies like Amazon, Adobe, and TSM are also making significant strides in AI, leveraging their resources and expertise to drive innovation and shape the future of the AI landscape.

Why Should You Invest In AI?

Investing in AI is increasingly becoming a strategic imperative for businesses across industries. Investing in AI can not only drive innovation and competitiveness, but also help unlock new investment streams for the investors. Here are some of the reasons why investing in AI is worth it:

Exponential growth - The AI market is experiencing explosive growth, projected to grow more than 10 times in the next 5-6 years. This growth isn't just hype,it is driven by tangible advancements and real-world applications. Early adopters are reaping the benefits, and the window of opportunity is still open.
Driving innovation and competitiveness – Development in AI can fuel innovation and help give companies a competitive advantage over their peers. From AI based automation to machine learning applications, AI is driving innovation at breakneck speeds.
Addressing global challenges - AI has the potential to address some of the world's most pressing challenges, from climate change and healthcare to poverty and education. By investing in AI solutions for these areas, you can not only generate financial returns but also make a positive impact on the world.
Unlocking new revenue streams - AI enables businesses to discover new opportunities for revenue generation. By analyzing data and customer behavior, companies can identify untapped markets, develop new products, and optimize pricing strategies.

What To Expect From AI In 2024?

2023 was primarily the year of generative AI. With AI technology being as broad as it is and also steadily evolving, here’s what to expect from AI in 2024:

Rise of explainable AI (XAI) - Black box algorithms are losing their appeal. In 2024, expect a surge in XAI solutions that make AI models more transparent and understandable. This will not only build trust and mitigate bias, but also accelerate innovation and adoption.
Democratization – While OpenAI might be in the lead when it comes to generative AI, open-source tools and platforms, like StabilityAI with Stable Diffusion, are also on the rise. Open-source AI tools and platforms will empower individuals and small businesses to leverage the power of AI for their own needs, fostering creativity and innovation.
AI-based physical tools - Advancements in AI and robotics will blur the lines between the digital and physical realms. Expect robots performing complex tasks in healthcare, manufacturing, and even customer service.
Generating new roles - While AI may automate some tasks, it will also create new ones. Expect a rise in AI-related jobs like ethicists, trainers, and curators, alongside a shift towards human-AI collaboration in various fields.

Here Are My Concluding Thoughts

All things said and done, investing in AI presents a compelling opportunity for investors looking to capitalize on the transformative potential of this technology. However, it's crucial to approach AI investment with a thorough understanding of the technology, the market, and the risks involved. As AI continues to reshape industries and drive innovation, those who approach AI investment with a strategic and informed mindset will likely reap the rewards in the years to come.