BofA Securities head of global thematic investing research Haim Israel notes that over the past 100 years, the equivalent of nearly 100 per cent of global net wealth has been created by only about 3 per cent of companies. He uses this remarkable data point to argue that the artificial intelligence field will provide the candidates for the 3 per cent that will drive wealth for the next century.
Some uses for AI will affect many of these industries. For instance, Google’s Deepmind AI has already uncovered more than 2.2 million crystal structures that could be used in materials science. This makes breakthroughs possible in areas like semiconductor density, solar panels, batteries and the development of neuromorphic computing that mirrors the functions of the human brain.
Fanuc Corp., one the world’s largest robot manufacturers, has been developing AI-driven robots since 2016. Mr Israel writes, “ gives robots the ability to teach themselves to do tasks faster and more efficiently. By learning together, what one robot can now do in eight hours could be done by eight robots in an hour.”
Frustratingly for investors, Mr. Israel did not survey BofA equity analysts for stock ideas that will benefit from the expected waves of innovation that AI will create. Morgan Stanley attempted this in another research report that