18 Cutting-Edge Artificial Intelligence Applications in 2024
The Biggest AI Trends In The Next 10 Years
The Biggest AI Trends In The 10 Years
Adobe StockAlthough I like to write about future predictions for the world of technology and business, I'm usually focused on what's coming up in the next five years.
That's because the companies I advise on data and tech strategy want to know what they should do now – or very soon – to leverage the opportunities of digital transformation.
But it's also worth taking a longer view. I believe that in 10 years' time, the AI that's a part of everyday life will be as far evolved from today's AI as today's internet is from the internet of the early days.
In his excellent book The Coming Wave, Mustafa Suleyman notes that every wave of technology-driven change – from the combustion engine to the internet – has revolutionized society in a shorter time span than the previous wave. So, I don't think we'll have to wait 30 or even 20 years until AI is utterly engrained in all aspects of life.
Instead, let's look ahead just 10 years to 2034. Halfway through the next decade, a lot will have changed, but what will AI look like? Here's what I think!
Is The Quest For AGI Over?Artificial General Intelligence (AGI) is among the holy grail goals of AI development.
Specifically, it refers to strong AIs that are capable of learning to do any job simply by being told what to do rather than how to do it. This contrasts with most narrow AI of today, which is specialized – designed to learn and get better at one particular task or field of work.
Multi-modal foundation models of today - like GPT-4 - appear to be getting close to AGI capabilities with their wide-ranging applications. But by 2034, we might have reached what we now consider "true" AGI. This doesn't necessarily mean we'll be producing sentient robots or computers as we've seen in science fiction, but enhancing current AI systems to work more intelligently and autonomously on everyday tasks.
This means AI will be even more intuitive and efficient in assisting us at work and home and capable of understanding and executing tasks in ways we might not ever consider.
However, achieving AGI also raises ethical concerns. While it doesn't mean AI will surpass human intelligence (that's the singularity, a separate event), we'll still have to take steps to ensure that everything it is doing is in our best interests. And safeguards will have to be in place for times when its own ideas about what that means might be different from our own.
Quantum AIBy 2034, it's very possible that the fusion of quantum computing and AI will have kicked off a new era of supercomputing and scientific discovery.
Quantum computing has the potential to vastly speed up some of the computation used in AI algorithms, for example, quickly solving optimization problems that would take far longer using classical computers.
This has already led to advances in drug discovery and material sciences, as well as the efficiency of route planning by delivery companies like DHL. Within 10 years, accessibility to quantum computing technology will have increased dramatically, meaning many more discoveries and efficiencies are likely to have been made.
The emergence of quantum computing is likely to also create significant challenges for society, and by 2024, these could be hot topics. Specifically, there are concerns about what super-powerful, AI-augmented computers will mean for security and encryption. Some predict that their sheer power means our ability to keep information private could effectively disappear. Let's hope that society has come up with some robust solutions to these problems by 2034!
AI-Powered Super HumansToday, we talk about being able to augment our capabilities with AI, but by 2034, has this evolved to the point that we're all basically superhumans?
AI applied to neural interface technology of the type that's already being trialed in humans could, in theory, enhance our cognitive capabilities, making us better at learning, recalling information, and even making decisions.
Advances in AI-augmented prosthetics could give us mechanical limbs or exoskeletons, making us far stronger and more physically capable than we are today. Camera and optical implants could improve our vision and make the decline of eyesight in old age a thing of the past. And tools that give us insights into behaviors and human-to-human interactions could help to increase our empathy and emotional intelligence, allowing us to better understand each other.
One important safeguard, though, will be making sure that these don't only benefit the elites. There's already a gulf opening in society between the technological haves and have-nots. Developing ways to ensure that this technology is of benefit to as many people as possible, rather than only those with the most money or living in the most advanced nations, will be an important challenge for the next 10 years.
Robots, Co-bots And Automated FriendsBig advances have been made in robotics in recent years, thanks to the application of AI to problems like balancing and moving in proximity to humans.
So, by 2034, it might seem reasonable to think that mechanical companions will be all around us. Collaborative robots (co-bots) will have moved out of the industrial settings they're found in today and into our homes, offices, amenities, and public spaces. We'll rely on them for help with household chores as well as for companionship and support and put our lives in their hands if we end up on the operating table.
Robots will easily handle all types of manual work, from deliveries to road repairs and construction. And in parts of the world with an aging population, they'll play an important part in providing care and safety for us in our homes. Integrated with natural language technology, they will talk to us, learn about us, and develop their own personalities. This could lead to us forming relationships with them in a very different way than we have done with other technologies.
In a decade from now, their integration into society could be one of the most important issues that society is facing. How much autonomy is it safe to give them? And are there ethical lines that we shouldn't cross when it comes to treating intelligent entities – even ones we've created ourselves – as labor machines and property?
AI in Government and Law EnforcementBy 2034, AI may be firmly entrenched in the infrastructure used to manage public affairs and the justice systems. Does this mean we will have an AI prime minister who provides better leadership than a human? Well, depending on your political views, you might argue that it couldn't be any worse. But I don't think we'll quite be ready for government-by-AI in 10 years' time.
Instead, what I think we'll have is a far deeper integration of smart governance technology into administration. This will streamline processes from managing refuse collection routes to issuing permits and licensing, making decisions on urban planning matters, and ensuring that services are delivered in a way that is valuable and personalized to each citizen.
Those involved in legislating and policy-making will use AI to understand what the public wants and set their priorities from there. It will proactively predict issues that are likely to be of concern in the future so steps can be taken to nip them in the bud. Similarly, police will routinely use predictive technology to anticipate where crime is likely to occur and even who is likely to offend. These capabilities will be an important part of the discourse in 2034 as we find ourselves increasingly under surveillance by government and law enforcement technology, and it becomes increasingly difficult to avoid leaving a digital footprint wherever you go.
Nvidia Becomes The Fourth Biggest Company In The World - Should You Invest?
Nvidia has become the fourth largest company in the world, with its share price surging 239% in 2023, and a further 51% gain already this year.
As a result, Nvidia is a retail investor favourite. It is the most bought stock globally on eToro so far this year, and regularly appears in the top 10 lists of most popular shares on other investment platforms. It is currently the fifth most bought share on Interactive Investor this year.
In terms of size, the microchip manufacturer recently overtook tech giant Alphabet, which owns Google, to become the third largest stock on Wall Street. Globally, Nvidia now stands behind only three companies: Microsoft, Apple and oil firm Saudi Aramco.
Subscribe to MoneyWeekSubscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money MorningDon't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Ahead of its financial results announcement this Wednesday (21 February), we examine Nvidia's meteoric rise and ask whether it's too late to invest.
The rise of NvidiaTwo years ago, few people had heard of Nvidia. But, a boom in artificial intelligence (AI), and billions of pounds worth of sales to the biggest tech firms on the planet, mean that Nvidia itself is now one of the biggest - and most-talked about - firms on the planet.
The company was founded in 1993 and is based in Santa Clara, California. It designs and makes graphics processing units (GPUs), which are used in a variety of ways, such as video games, cryptocurrency mining and autonomous driving technology.
Now, the trillion-dollar company is focused on AI. CEO Jensen Huang told CNBC in an interview last year that he changed the company a decade ago so that "every chip that we made was focused on artificial intelligence".
Nvidia is reaping the rewards for its early investment in AI: skyrocketing demand for its high-powered GPUs means it consistently exceeds analysts' forecasts for sales and profits across previous quarters, driving the share price ever higher.
Sam North, market analyst at eToro, says the company has "very effectively extended its influence into AI and deep learning", adding: "Revenue streams are diverse, encompassing GPU sales for various applications, data centre solutions, gaming products, professional visualisation, and automotive solutions. This multifaceted approach has positioned the business as a key player in tech sectors driving innovation and advancements in computing."
According to North, Microsoft, Meta, Google, and Amazon spent more than $10 billion on Nvidia's chips last year, helping the chipmaker triple its revenue.
Richard Hunter, head of markets at Interactive Investor, says the company has "seriously captured the imagination of investors who are scrambling to anticipate the huge financial benefits that a boom in AI could bring".
He adds: "The chipmaker, whose products already enable the likes of video recommendations on TikTok and advertising recommendations on Instagram and Facebook, is now being seen as a potential leader in the AI space with its computing power at the forefront."
How is Nvidia performing?The shares have had a stellar run, most recently following a market update in late November, which revealed that revenues had grown by 206% year-on-year to more than £18 billion, comfortably ahead of Wall Street estimates.
Analysts are expecting another strong set of results this Wednesday, with some headlines predicting that Nvidia will "rock" markets when it unveils its 2023 figures.
Nvidia has provided a bullish forecast for its fourth-quarter sales, estimating them to reach a colossal $20 billion, up from the $6.1 billion in the same period a year ago.
HSBC has adjusted the price target on Nvidia shares, increasing it to $835 from the previous target of $800. The share price is currently around 725p.
The bank sustained its "buy" rating for the stock.
Away from sales and share prices, cash flow is another impressive metric that Nvidia possesses.
North explains: "Nvidia's asset-light model has contributed to an impressive free cash flow of $17 billion over the last four quarters, surpassing its semiconductor rival Advanced Micro Devices (AMD), which reported a free cash flow of $1 billion."
Looking at the GPU market more widely, Nvidia holds approximately 80% of the global market share in GPU semiconductor chips.
"Right now, people are believing the hype and the numbers are backing it all up," says North.
Should you invest?But when there's this much hype, could there be a bubble developing?
The ever-rising technology stocks - as seen in Apple, Alphabet, Amazon, Meta, Microsoft, Nvidia and Tesla, dubbed "the magnificent seven" - have led some critics to make the comparison between today's AI-fuelled boom and the dotcom era.
However, others think the theme has further to run, and investors could make money by buying Nvidia shares - or a fund or investment trust that holds the shares. But, timing is key, and investors should beware of volatility, and be careful not to over-allocate.
North comments: "Since forming a bottom in the market back in October 2022, Nvidia shares have risen nearly 600%. However, it hasn't always been plain sailing. From November 2021 to the low we saw in October the following year, shares dropped by nearly 70%."
According to Hunter, the shares could be vulnerable to disappointment as expectations have increased so much. Other potential concerns include the "heightened geopolitical tensions between the US and China, with each seemingly reluctant to sell their advanced technology products to each other, potentially reducing Nvidia sales. In addition, the concerns of many governments regarding AI and its impact on human society warrant deep consideration".
North says that investors wanting to buy Nvidia should look for a dip in the share price as this could be an advantageous moment to buy in.
He adds: "The company's commitment to research and development, coupled with its strong financial position and comparatively low valuation, at 33x forward earnings estimates, suggests there might still be room for growth. As the AI market continues to expand, Nvidia's leadership position and strategic investments make it a stock worth considering, especially if the market provides an entry point at a more favourable price."
You may find you already own Nvidia via other funds or investment trusts that you invest in. Many US-focused or tech-focused ones will hold the stock. For example, Scottish Mortgage owns Nvidia shares, as do Baillie Gifford American, Allianz Technology Trust, Martin Currie Global Unconstrained, Blue Whale Growth fund, Polar Capital Technology, Sanlam Global Artificial Intelligence, Brown Advisory US Sustainable Growth Fund and GQG Partners Global Equity Fund, to name just a few.
So check if you already own the chipmaker in your investment portfolio to avoid over-allocating and holding too much of the company.
Hunter suggests that more cautious investors who might like some exposure to AI could buy a specialist technology investment trust that spreads the risk across many holdings, "or even a technology tracker which does much the same but on a passive basis".
What Are The Best AI Stocks In February 2024? Our Top 3 Picks
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investing in AI stocks is thrilling, especially now in February 2024. Furthermore, the best AI stocks come from companies leading the way in new ideas. This is making tech that could really shake up our lives and jobs.
These industry-leading companies show they can cater to enterprises and professionals demanding AI tech. This sets them up nicely for more success in the future. They have an edge in one way or another, whether that be having thousands of AI patents or owning a technology that is needed to run AI.
As such, they offer a promising opportunity for investors looking for AI stocks to invest in now.
Nvidia (NVDA)
Source: Ascannio / Shutterstock.Com
Nvidia Corporation (NASDAQ:NVDA) is a key player in AI thanks to its GPUs. For instance, the A100 and the ultra-modern H100 Tensor Core GPU have become foundational in training advanced artificial intelligence models.
The H100 uses high-level AI innovation in the form of Hopper architecture, which has the scalability and computing efficiency needed for huge AI workloads. This functionality has come with a huge demand for this tech from government organizations, cloud services, and more. That's good news for Nvidia stocks!
There's competition in any industry, and Nvidia has companies like Advanced Micro Devices (NASDAQ:AMD) angling for a market share. However, Nvidia's commitment to pushing out next-gen tech is keeping it in the lead.
August 2023 saw the release of the Hopper GH200, with active deliveries set to start in Q2 2024. There's also the Black GB200 in the works, offering faster, more accurate training of sophisticated AI models.
Nvidia's position on the list of best AI stocks for February 2024 is not just because of its hardware offerings. The company also has CUDA, a computing software that's becoming the go-to for developers working on training enterprise-level AI models.
Although Nvidia stock has surged by more than 40% since the beginning of the year, it remains one of the best AI stocks. Analysts expect EPS growth of 268% in FY2024 and 68% in FY2025.
Last month, NVIDIA announced it would hold a conference call on February 21 to discuss its financial results for the fourth quarter and fiscal year 2024. In the last quarter, the semiconductor giant reported earnings of $3.92 per share, with revenue of $18.12 billion.
With exciting product cycles to come and increasing AI adoption in varied industries, NVIDIA and its stocks are well-positioned to capitalize on AI's growth.
Accenture (ACN)
Source: Tada Images/ShutterStock.Com
The top AI stocks in February show great promise for companies doing the futuristic work of shifting enterprise AI usage from the experimentation stage to active implementation. One company helping its clients adopt AI technology is Accenture plc (NYSE:ACN). In 2023, it announced a $3 billion investment in its AI division to assist customers in leveraging AI for enhanced business productivity.
This company is witnessing a huge demand for its services and is poised to capitalize on this opportunity. Accenture is a market leader in AI, with up to 1,450 AI patents and many more pending applications. Accenture is also leveraging its market-leading expertise to help clients in varied industries use AI to scale their operations.
The biggest selling point for Accenture is its specialized services, which revolve around personalization in generative AI. Through these services, Accenture is pushing the frontier, giving enterprises in manufacturing, retail, and other fields the power to modify foundational models as needed. It also offer a proprietary switchboard technology that combines various generative AI models to fit unique enterprise operational needs.
AI may be a dream for many. However, for Accenture, that dream is now. The last fiscal year saw $300 million in sales from generative AI. This year, it already managed $450 million in bookings.
If numbers are to be believed—and in the investment world, they are—Accenture stocks are set for a massive bull run.
Alongside the impressive sales numbers, the company is set to double the number of AI specialists it employs to 80,000. With only 12% of global companies able to harness AI capabilities, Accenture is likely to play a major role in disrupting the global business landscape through generative AI.
IBM (IBM)
Source: JHVEPhoto / Shutterstock.Com
IBM Corporation (NYSE:IBM) is one of the biggest players providing cloud and quantum computing solutions. Also, its further advances are within AI, creating some of the most powerful AI systems like Watson, which are used across different industries, functions, and practices—be it data analysis, human language understanding, or decision-making.
IBM surprised experts by predicting a better-than-expected growth of around 5% in its sales for 2024, not counting changes in currency value. It also expects to have about $12 billion in free cash flow this year, which is impressive.
IBM said more customers using AI systems boosted the demand for its software and services. Some top experts also pointed out that IBM's estimate of having $12 billion in cash for 2024 stands out, especially since they had thought it would be between $11 billion and $11.5 billion.
It has a price-earnings ratio of 18.3, which analysts think investors can take advantage of now. Hence, the company's excellent future and good value make IBM one of the best AI stocks to keep in view in February 2024.
On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.Com Publishing Guidelines.
Joel Lim is a finance freelance writer who writes content for several companies like LTSE and Realtor, along with financial publications, including Mises Institute and Foundation for Economic Education.
More From InvestorPlaceThe post What Are the Best AI Stocks in February 2024? Our Top 3 Picks appeared first on InvestorPlace.
Comments
Post a Comment