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This is Money Podcast

Podcast extra: How investors can back AI - Simon Lambert speaks to Sam North

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1650 Ratings

🗓️ 7 July 2023

⏱️ 5 minutes

🧾️ Download transcript

Summary

Artificial intelligence has burst into the headlines over the past year and generated excitement among investors.

But as with any exciting new technology that has generated a lot of hype, there will be pitfalls for investors along the way. 

If you want to invest in the AI revolution, what other companies could benefit and what do you need to consider. This is Money's Simon Lambert speaks to eToro’s Sam North to find out more.

Transcript

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0:00.0

Major breakthroughs and the advent of chat GPT and Google's Bard have led to a serious rush of interest in artificial intelligence over the past six months or so.

0:13.0

That has also got the interest of investors looking at how they can play this potential opportunity, not just in terms of investing directly in AI,

0:23.3

but how it can help companies. I'm joined here by Sam North of E Toro to talk us through

0:28.7

investing in A and what I and what people need to think about. Sam, how much interest has AI sparked

0:35.3

in investors? I mean, the simple answer is a lot. Over the last

0:39.0

few months, pretty much everyone I know has mentioned it one way or another. However, I guess it's

0:45.1

worth noting at this point that, you know, AI has been around for quite some time. I think you can

0:49.8

track its developments back to even the 1950s. But of course, it didn't really take off until last

0:56.2

autumn with the launch of chat GPT, as you mentioned there on November the 30th. For a bit of a

1:02.8

guide, it took Netflix three years to hit one million users. But for chat GPT, it took five days. Last

1:10.1

month, it hit 2 billion unique users.

1:13.4

And, you know, there's less than 8 billion people in the world.

1:16.1

So that's remarkable.

1:17.2

I mean, it's been a phenomenal ride so far.

1:19.8

Certain stocks like Nvidia have exploded higher this year.

1:22.9

And we're seeing more and more companies mention the word AI in conference calls.

1:30.3

In fact, of the S&P 500 companies,

1:37.3

it's something like 95% of communication services and 65% of all information technology companies cited AI on those earnings calls. So really impressive there. I mean, look, for now it seems like

1:41.8

we're riding the hype train, but I guess the

1:45.8

reality is that this could change the world. You know, NVIDIA became the latest one trillion

1:50.2

dollar company briefly on the back of this run and other similar companies have benefited

1:55.0

from the interest as well. So I think investors are excited and I think it's here to stay.

...

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