This is the golden age of investing in artificial intelligence, says Eric Schmidt, a former head of Google now known as


Alphabet:.
UBS calls AI the top investment topic for the next decade. So where are all the attractive stock prices? Do not offer to use artificial intelligence to search for them. I talked to a guy who does just that, it started slowly.

Schmidt says that machines will cure our diseases, enrich our lives, և they probably will not destroy us in the Terminator style. But they can deceive us to destroy each other. he advises making some changes as long as we can.

There is a 3,000-year-old Chinese game called Go, which is so complex that it has more possible board configurations than the atoms of the universe. When the Alphabet app called AlphaGo became the best player in the world in 2017, it benefited people from playing. But it quickly overtook the version called AlphaGo Zero, which was told only the rules – it teaches itself creative, unprecedented strategies. The game, as Alphabet puts it (GOOGL), “is no longer limited to human knowledge.”

AI allows cars to behave like humans. The subset of machine learning includes training in computer science using labeled data so that they can make reasonable predictions or conclusions about raw data and improve. Its subset, called in-depth training, uses artificial neural networks that have been modeled on our brains to reduce the need for human intervention.

There have been two failed AI research booms in the past, most of which culminated in a movie about a rogue computer. In 1968 it was in HAL 2001. Space Odyssey, and in 1984 it was on Skynet Terminator:. This time the technology has reached the escape speed for three reasons. First, the world is full of valuable data. By 2030, humanity will have collected enough bits to fill 610 iPhones, each with 128 gigabytes of storage, for every person in the country. Second, the advancement of data center chips allows machines to clear that information for imagining.

Third, companies are already making a profit. AI provides Google search results, Alexa word recognition և


Teslato:
self-driving cars.


Netflix:
It is used not only to offer movies, shows, but also to quickly adjust the speed of data, to guess which thumbnail is most likely to make the user click on the title, even to determine the most likely recipes for creating new hits.

UBS expects AI revenue to grow by 20% a year to $ 90 billion by 2025. The good news is that for S&P 500 investors, they are already loaded on key beneficiaries, including:


Amazon.com:
(AMZN),


Microsoft:
(MSFT), the alphabet և is probably the simplest


Nvidia:
(NVDA), whose chips dominate the machine learning process.

Schmidt, a former CEO of Google, says the big players have an advantage in terms of data abundance, while the small ones will benefit from the free flow of capital to start-up AI companies. “These waves are coming, everyone is coming to life,” he said. “Not all of them win, but some of them win huge.”

But UBS says investors are better off looking beyond the big names in AI to avoid regulatory risk. Many smaller names are private or spoken as:


Xilinx:,
which is bought


Advanced micro devices
(AMD): One is chip up-and-comer


Marvell Technology:
(MRVL), valued at $ 69 billion. Bank of America recently named it the next leader in the $ 100 billion cloud. It sells for more than 43 times the forecast for next year. Marvell և larger


Broadcom:
(AVGO) helps cloud giants create their own application chips. There are stock exchanges that focus on AI, sort of. It:


Global X Robotics & Artificial Intelligence:

ETF (BOTZ) has many manufacturers of industrial robots, as in Switzerland


ABB:
(ABB) իայի Japan:


Fanuk
(FAN).

Schmidt says AI could be 10 to 15 years away from winning the stock market. Chris Natividad, Chief Investment Officer at EquBot, offers it today


AI Powered Equity:

ETF (AIEQ): It allows you to look at the car as standard financial means,


Twitter:
feed, Reddit chat boards և more, և decide what your own mix of tips are in favor of. The performance of the foundation four years ago was insignificant, but Natividad thinks the car is getting smarter.

There is a lot of potential for AI confusion, says Schmidt, who advised the Department of Defense to use it. Technology can track down hypersonic missiles that can land without warning. “Imagine if he learns something wrong, actually makes the wrong offer, starts a war,” says Schmidt. He called on China to swear allegiance to Russia to use automatic weapons.

So-called deep fake tools or videos that can make celebrities feel like they are doing or saying something are open source or widely available. “The power of video is extraordinary,” says Schmidt. “If you make a fake video, you actually tell people it’s fake, you show it to them, they still more or less believe it. It is a human problem. ”

And of course, AI does not have to kill or destabilize to make us miserable. Schmidt says frustration is seven times more common than intelligence. “Why are we surprised that we are all outraged by social media?” she says. He co-authored a book with former Secretary of State Henry Kissinger դ Dean of Computing College MIT Schwarzman’s Daniel Hattenlocher. It is called The age of AI և our human future.

Schmidt compares AI to the power of և telephone availability և the power և for good and evil. AI will find drugs that will save millions of lives, he says.

“People always say, ‘Oh, robots are going to take over the world,'” he says. “Not without us watching. And remember, we can always turn them off if we are really worried. ”

Write Jack Hough at jack.hough@barrons.com. Follow him on Twitter : Subscribe to his Barron’s Streetwise podcast.

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