The 3 emerging trends in AI to keep in mind for your portfolio

Most technology companies now claim to be implementing AI in some form to enhance their product shelf or operations. But the key competitive advantage is not access to the technology, but access to the vast amounts of data an AI-powered app needs to generate a significant improvement in insight or customer service.

This means a company trying to improve its AI capabilities needs to work with a partner that can help them access their massive troves of data. “There are many companies in this position,” says Mr. Velez. “For example, Salesforce holds customer data for enterprise customers and ServiceNow manages workflow for many enterprises.”

In addition, many companies hold massive amounts of data on their customers, information they can use to improve their AI capabilities. For example, Alphabet can use AI to improve the search experience, and META can use it to improve the social network experience. Both of these companies have a competitive advantage in regard to data, and can benefit from the rapid growth in AI.

The next stage of generative AI-driven growth should also prove to be robust, but will proceed at a slower pace, as it will take time for it to reach mass-scale adoption. “Investors often overestimate the short term and underestimate the long term,” cautions Mr. Velez. “But for the patient investor, AI has the potential for a long runway of growth over the next decade.”

If you’d like to discuss the insights raised in this article in more detail or have questions about your investment portfolio, please contact your advisor or CIBC representative anytime.