Most people think of the artificial intelligence (AI) revolution as something that’s theoretical — a technology that will affect things in the future. In actuality, though, it is already happening. So, today, I want to walk you through a few areas that are already being impacted by AI so you have an even better feel for why now is the time to invest in this world-changing technology.
Back in 2016, an important milestone was hit — with little fanfare from the mainstream media — that computer experts weren’t expecting for another decade.
That was when an AI computer program named “AlphaGo” defeated the world’s best player in the game of Go.
While this event occurred in Seoul, South Korea, that hugely popular strategy game was actually invented thousands of years ago in China. To put AlphaGo’s victory in context, think of the time IBM’s Watson defeated Garry Kasparov, the legendary chess master…
…except that Go is actually much, much more complicated than chess. The AI had to perform smart “pattern recognition” and think on its own — in a way artificial intelligence hadn’t done before.
And the benefits will be felt way beyond games.
As AI is applied to just about every major industry worldwide, the AI market is expected to grow from $21.46 billion in 2018 to $190.61 billion by 2025.
Let’s look at how this will work and how investors can start to cash in today.
But First, Let’s Clear Up A Common Misconception
Most of us don’t have time to pore over white papers and look at all the intricacies of how artificial intelligence works.
So, I don’t blame anyone who is left with the impression from science fiction, of androids that think exactly like people.
The current projects are not that. So, no need to worry that these scientists are building the robots that will take over the world!
The projects they’re working on are intended to:
- Get systems to perform tasks normally done by people — but without worrying about how human reasoning works.AlphaGo was a great example of that.
- Use human reasoning as a model but not necessarily the end target.Apple’s Siri, Google’s Google Now and Microsoft’s Cortana are examples of this one.
Saving Time, Lives & Money
Let’s start with self-driving cars, because today it is probably the best-known application of AI.
We talked a bit about the role AI would play in self-driving cars last week, so today I want us to focus on safety and cost savings.
When cars can truly drive themselves, and we’re all riding around in “robo-taxis,” the benefits to society will be remarkable:
- In urban areas, traffic will be reduced by about 30%, as reported by Inc.com.
- Land will be freed up, too. Newsweek reports that “there are more than a billion parking spaces in America. If autonomous vehicles are doing all the driving, we can get rid of 90% of them.”That’s because:
- Most people won’t have to OWN a car at all — saving a ton of money. With a car that can drive itself off after you reach your destination, you can simply use a smartphone app to hail whatever car you want (BMW, Mercedes, Jaguar, Porsche…), whenever you want.Without owning a specific car, you don’t have to pay the value of the car. You don’t have to pay the maintenance either. Money.com estimates it’ll save the average family thousands of dollars per year.And most importantly…
- Self-driving cars are expected to reduce car-related deaths by up to 94%. That would be more than 350,000 lives saved over the next 10 years in the United States alone.
Speaking of saving lives, there are some pretty exciting uses for AI in healthcare that will reduce human error.
Better Medical Outcomes
Surgeons spend years honing their craft and rising to the top of their field. I don’t want to minimize that. But research published by the Harvard Business Review, which looked at 379 orthopedic surgeries, found that the AI-assisted robotic procedures resulted in five-times fewer complications compared to surgeons operating alone.
There’s also a lot of potential in virtual nursing assistants. They’d be available 24/7 to answer questions and monitor patients. This would help reduce hospital readmission or unnecessary hospital visits.
Along those lines, artificial intelligence can help with clinical judgment or diagnosis. In fact, Corti SA’s AI software can determine over the phone if someone is having a heart attack. It does it by analyzing the caller’s choice of words, tone of voice and background noises. And it’s been correct 93% of the time, versus 73% for human dispatchers. Even better, the AI makes the decision 62% faster!
Convenience & Efficiency
And finally, artificial intelligence can vastly improve our workdays as well.
Can you imagine having every Friday off from work? But being just as productive and getting paid just as much? That’s what one Nobel Laureate, Joseph Stiglitz, predicts. He’s also a former chief economist at the World Bank, and he expects our standard work week to decline – just as it did after the Industrial Revolution. Specifically, he’s looking for now a 25 or 30 hour work week.
That goes for nearly every industry. But let’s look just at retail.
Grocery stores, home improvement stores, and pizza places — yes, even pizza is getting in on the action, namely Domino’s Pizza (DPZ) — are investing in AI. Soon, when you call up your local Domino’s, an AI platform will take your order, and the humans can just go on making the pizzas.
Retail and restaurants have notoriously high overhead costs. By using AI for procurement, supply chain, logistics and theft reduction, companies could save more than $300 billion, according to a report by Capgemini.
AI will even allow Amazon (AMZN) to operate physical stores. That’s right: the “killer” of brick-and-mortar retail is opening its own stores — with no checkout lanes. Instead, you’ll use a smartphone app to pick out your items, your Amazon account will be charged accordingly, and you’ll be in and out in a flash.
Now, Don’t Get Me Wrong
I am not recommending you rush out and buy AMZN or DPZ stock — at least not as your artificial intelligence play.
I’m recommending what’s sometimes called a “picks and shovels” strategy.
As thousands rushed to California during the 1849 Gold Rush, some embarked on a safer, surer way of acquiring wealth than panning for gold. They sold basic goods to the miners…like picks and shovels! These were the folks that ultimately got rich.
One clever German immigrant sold them a new type of durable pants that became a huge hit. And his name is probably the only one from the Gold Rush that you’d recognize today: Levi Strauss.
The “picks and shovels” of AI is a well-established, but little-known name in computer hardware.
Because it’s the leader in its market, its products are going to be crucial in the AI revolution. That will be the stock that lets us cash in over the years to come — as AI revolutionizes transportation, healthcare, retail (and much more).
In Growth Investor, we made 274% the last time we owned it. And now I’m back for Round 2.
Go here to watch my presentation on the huge technological shift going on now. At the end, you’ll get the chance to hear my #1 investment in artificial intelligence — for free.