It is logical that the progress of AI should be regulated so that it does not disrupt the functioning of society. Concerns in this regard have been expressed in recent weeks, particularly by well-known figures in the technology sector. In total, more than 2,600 prominent figures, including Elon Musk and Steven Wozniak, have signed an open letter calling for a halt to AI development for at least six months.

Fears for the future

The Future of Life Institute (FOLI) is also calling for a slowdown in the training of AI systems such as the latest GPT-4 model, which was made available on 14 March 2023 and has gained huge popularity.  FOLI warns that competition between companies for leadership could cause AI development to spiral out of control. Machines could create propaganda, hoaxes, deep fakes, automate jobs too uncontrollably, and generally disrupt social systems.  Humans would consequently be unable to distinguish between what is real and what is generated by advanced visual or textual software. The Institute also called on governments to engage in a moratorium if their proposal to stop development does not take effect immediately.

Problems associated with rapid development

This challenge raised the question of whether we can properly handle the high potential of AI, but also the problem of the possible loss of some jobs and associated unemployment. According to analysis by Goldman Sachs, AI could put more than 300 million people out of work worldwide, two-thirds of them in Europe and the US. Countries with developed economies and lower share of manufacturing, including Japan and the UK, would be most affected. Conversely, countries with a higher share of manufacturing, such as China, India or Vietnam, would be less affected. Looking at the problem from the other perspective, however, economists at Goldman Sachs predict that AI could help boost global GDP by up to 7% within a decade. It will destroy some jobs but create new ones, but it is also likely to widen the gap between rich and poor.

Opponents versus supporters

Opinions on artificial intelligence and its usefulness to humanity divide the professional public into two camps. While some warn against its rapid development, others see its potential. Bill Gates, for example, sees a halt in development as unnecessary. He believes that society should rather focus on using it more effectively. Microsoft, which Gates founded, has invested some $10 billion in OpenAI, the company's most promising project, and has secured a market leadership position among other technology giants. It is using its own cloud to develop more advanced models, setting it up well for rapid growth within AI.

Investing in AI

This is one of the fastest growing areas in the market and definitely has great potential in terms of investment opportunities. You just need to identify the companies with the best backgrounds, with competition growing all the time. Google has its own chatbot, called Bard, which has become a peer of ChatGPT, as Google's new chips are reportedly up to 1.7 times faster and 1.9 times more energy efficient than Nvidia's A100 chip. Chinese company Baidu has its own bot called Ernie, and Apple has long used Siri. The development is really fast and companies like Alphabet, IBM, Amazon, Microsoft, Apple and Tesla want to be ready for the new circumstances. The most well-known company in the field of AI development, OpenAI, is not tradable, but there is still a portfolio of chip leaders, such as the aforementioned NVidia. Chips are essential to the functioning of AI, and their production is closely linked to the tech industry. In addition, in this regard, it is certainly interesting to focus on shares of companies such as Taiwan Semiconductor Manufacturing Company (TSMC), Accton Technology or Wiwynn. However, new start-ups and funds focused on this type of investment are constantly emerging, so it is important to keep an eye on what is happening in the world and find the most suitable investment opportunities, of which there are many in the case of artificial intelligence.

Olivia Lacenova, Principal Analyst at Wonderinterest Trading Ltd.