Global Association of Risk Professionals (GARP)’s Post

🔍 Did you know that investors are optimistic about the future of technology stocks? According to the latest survey, 77% of respondents plan to increase or maintain their exposure to these stocks in the next 6 months. And here's the interesting part: less than 10% see a bubble bursting in the sector! 📊 📋 Insights: - 77% of investors are bullish on technology stocks - Less than 10% believe the sector is in a bubble - 50% of participants are not inclined to pay for AI tools - Majority of firms aren't planning to use AI for trading or investing 🤔 What are your thoughts on the future of technology stocks and AI? Are you betting on the continued success of this sector?💭 #TechnologyStocks #Investing #AI #MarketTrends https://lnkd.in/dZ3ByPqw https://lnkd.in/dYEbmWDX

Veteran Tech Analyst Dan Ives Says Artificial Intelligence (AI) Use Cases Are "Exploding." 3 Stocks to Buy Now to Profit From the Trend. | The Motley Fool: In 2023, artificial intelligence (AI) has gained significant momentum, with ChatGPT attracting 100 million users within two months and generating 1.4 billion visits in a month. The tech-heavy Nasdaq Composite has risen by approximately 30% this year. A Wall Street veteran believes that tech stocks, particularly those involved in AI, will continue to rise in 2024. The Federal Reserve's decision on interest rates is causing some concern, but analysts suggest investors should focus on the potential of AI in 2024. Nvidia and Microsoft have been early beneficiaries of the AI revolution, and Microsoft's integration of generative AI tools could add $100 billion in revenue by 2027. Analysts predict a second wave of AI adoption, benefiting cloud infrastructure providers like Amazon and Google. Meta Platforms, the parent company of Facebook, is investing in AI to improve advertising efficiency. The long-term potential of AI is expected to drive significant growth for tech companies that can harness this technology. - Artificial Intelligence topics! #ai #artificialintelligence #intelligenzaartificiale

The buzz around #AI is growing louder, with tech shares outperforming and major players getting ready to roll out new AI tools. We see AI as one of the five #MegaForces driving returns now and in the future. Read why! 👉 https://bit.ly/3ulKBC0

🤯 𝗜𝘀 𝘁𝗵𝗲 𝗔𝗜 𝗯𝘂𝗯𝗯𝗹𝗲 𝗿𝗲𝗮𝗰𝗵𝗶𝗻𝗴 𝗮 𝘁𝗶𝗽𝗽𝗶𝗻𝗴 𝗽𝗼𝗶𝗻𝘁? If you recall the Nasdaq rise (+800% in 1995-2000) and subsequent fall (-78% in 2.5 years), you know you gotta be cautious. That’s exactly the approach Sequoia Capital is taking. They raised the question of AI’s return on investment, which I totally can relate to. 𝗧𝗵𝗲 𝗔𝗜 𝗲𝗰𝗼𝘀𝘆𝘀𝘁𝗲𝗺 𝘀𝗵𝗼𝘂𝗹𝗱 𝗯𝗲 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗻𝗴 $𝟲𝟬𝟬𝗕 𝘁𝗼 𝗷𝘂𝘀𝘁𝗶𝗳𝘆 𝗶𝘁𝘀 𝗰𝘂𝗿𝗿𝗲𝗻𝘁 𝘀𝗽𝗲𝗻𝗱𝗶𝗻𝗴. 💸💸💸 The catch? OpenAI is currently making $3.4B per year—falling short of the target. The rest are earning even less, if anything at all (see below). The problem is multifaceted:  🤯 OpenAI, Anthropic, and Google chatbots are predominantly used in their free versions. 🤯 Many early AI apps face a “tourist” problem: they attract a lot of initial interest but have shockingly low retention and engagement rates. 🤯 According to an Emergence Capital survey, 2 out of 5 generative AI products have yet to make a single dollar, despite companies spending millions to billions to develop and maintain them. Personally I think AI is very promising, but way overhyped at the moment. It should come to reality check within 1-2 years – and we're going to start seeing things change. AI game is becoming the energy resources game (but that's a topic for another post). 𝗪𝗵𝗮𝘁'𝘀 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁? 𝗜𝘀 𝗔𝗜 𝗶𝗻 𝗮 𝗯𝘂𝗯𝗯𝗹𝗲? #AI #ROI #artificialintelligence #bubble

Investors Anticipate Automation Impact on Employment with Stock Prices #ArtificialIntelligence As artificial intelligence becomes more prevalent in the economy, there is a growing need to distinguish the winners from the losers. A trio of researchers say companies whose workforces are ripe for AI streamlining are doing something interesting in the market: beating them. Read More: https://lnkd.in/g3JxRJkg

Dan Loeb Hails AI As Revolutionary, Views Severe Recession As Unlikely: Dan Loeb, CEO of Third Point, praised artificial intelligence (AI) as a transformative technology likened to the Industrial Revolution. He anticipates a mild recession but believes the Fed will counter it. Loeb highlighted Microsoft, Amazon, and Google as potential AI beneficiaries, and predicts they will benefit regardless of the specific AI products that succeed. He also expressed optimism about the US economy, citing strong consumer and corporate finances. - Artificial Intelligence topics! #ai #artificialintelligence #intelligenzaartificiale

Financial services are on the brink of a revolution with generative AI! 🌐 While the journey to harness its full potential presents hurdles, the promise is huge. McKinsey forecasts a staggering $2.6-$4.4 trillion annual economic boost, with banking poised for major gains. This tech is not just about cutting costs; it's redefining efficiency and opening doors to innovative solutions in areas like asset selection and risk assessment. However, the road ahead includes navigating legacy tech, talent acquisition, and regulatory landscapes. Let's discuss how we can unlock this value together. #GenerativeAI #FinancialInnovation #GenAIPartners 🔗 Read more: https://lnkd.in/e_YNwU5T

AI is a BUBBLE. But, what are your employee and customers’ uses and hopes? Interesting article stats: 1.       Big 4 techs collectively splurged $200B on capital expenditure last year (and increasing this year). 2.       Sequoia estimates about $3 billion/year sales run rate up from zero a year ago (but generating big operational losses). 3.       Forecasts for spending on: advanced semiconductors, data centers, and new power… a.       Sam Altman’s: up to $7 trillion (I saw another at $5T) b.      $7T…would equal about 30% of U.S. GDP for one year Questions: 1.       What percent of your employees and customers are: experimenting with AI; liking it; and have what hopes for future applications on their intelli-phones? By when? From whom? 2.       Is AI a bubble? Is this a huge misallocation and malinvestment? 3.       If so, when will AI pop and go into “the trough of disillusionment”? 4.       For a deeper analytical dive see: https://lnkd.in/gESjcjiA). Faster, better answers will be great, but don’t forget: 1.       Best, service-excellence metrics tuned to one target customer segment at a time. 2.       Plus, win-win, supply-chain, replenishment solutions for both whales and gazelles. 

We think we’re at the dawn of an intelligence revolution. The number of parameters – elements of #AI models that allow them to better understand patterns and provide nuanced output – has likely surged exponentially in five years. Read more about it here 👉 https://bit.ly/3SHjdsb

This is a great article for understanding GenAI's impact on the economy and the labour market so far. It is too early to take this as an accurate warning. Technology takes time to implement and even more time to become mainstream and essential. AI hasn't replaced people as fast as it was argued, and it is also not boosting productivity as much as expected. The author highlights that big tech won't see earnings from AI products until 2032. Can investors and the market wait that long under the current economy?