“What single word would you use to describe today’s AI investment plays?” The question was posed to me as I sat in on a panel discussion with Jim Rickards, Byron King, Dan Amoss and a few other influential minds in the investment community at the famous (or infamous) Watergate Hotel in Washington, the heart of the swamp. As I’m sure you know, artificial intelligence (AI) has captured the attention of Wall Street and Main Street alike. Optimistic investors have driven shares of stocks tied to the AI trend sky-high (hello, Nvidia!).
And the euphoria is starting to resemble the levels of optimism surrounding the “dot-com” bubble which was at its peak when I started my investment career as a hedge fund manager at the beginning of this century. Quite frankly, I’m concerned. Of course, there are some great use cases for artificial intelligence.
The technology can be used to advance medical science, improving longevity and quality of life for patients. Advances in AI can also help people better communicate around the world, overcoming language barriers. Companies are improving efficiency, reducing waste and freeing up people to focus on more important tasks and conceptual ideas.
It seems like every day there’s a new use case developed for this amazing technology. Yet many wise minds have been warning about the dangers of AI as it becomes more powerful and autonomous. These warnings are moving from the purely theoretical sphere, where they’ve been for decades, to th.