The rapid adoption of generative AI, driven by platforms like ChatGPT developed by OpenAI, has generated a frenzy across the world. The advanced AI technology has implications across various sectors. In a recent talk, Aviva Investors assess the risks and opportunities to invest in AI as well as the ESG considerations.
One aspect the experts discuss is the dominance of big tech companies in AI development. Microsoft, with its integration of AI into products like Azure, is gaining market share and leading the way in creating a bundled ecosystem. “Microsoft is moving more quickly than Google but over time, all Big Tech companies should benefit,” says Julie Zhuang, portfolio manager at Aviva Investor.
On the progress of AI technology in China compared to the West, the experts from Aviva point out that China has focused on software and AI development due to its limitations in high-level semiconductor development. As per Alistair Way, head of equities, the use of AI in China has both positive implications, such as advancements in safe autonomous driving technology, but also negative implications such as concerns over surveillance and control. “Although Beijing has introduced laws to improve and modernise the data-protection regime since 2017, companies are still likely to have to share consumer data with the government if ordered to do so,” says Way.
As per Aviva, there are some industries already that benefit from AI such as medical technology and also industrial automationa nd investors can find opportunties in these sectors. “AI is driving industrial automation and that is a big investment theme,” says Zhuang.
Under ESG aspects, AI can benefit the healthcare sector as there is a huge scope for the technology to speed up the drug-discovery process. “Greater AI utilisation in healthcare could create opportunities for better disease prevention and detection,” notes Sora Utzinger, head of ESG corporate research.
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