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28 March 2023 09h15
Source: Banco Carregosa

OpenAI: what it means for investors

OpenAI: what it means for investors


Robots that make investment decisions autonomously, algorithms that sift through millions of lines of data to identify patterns imperceptible to humans, and programmes that can outperform human analysis and reasoning skills. The financial sector has long relied on cutting-edge technology to identify investment opportunities. The difference, as recent news about OpenAi, the company responsible for tools like ChatGPT, shows, is that these technologies may now be more accessible – and more powerful – than ever before. Find out what's new in the fast-paced world of Artificial Intelligence and what it means in practice.   



What is Artificial Intelligence and how is it developing?


Artificial Intelligence is the ability of a machine to reproduce intrinsically human abilities such as reasoning, learning, planning, and creativity. This ability to learn autonomously enables AI to adapt by analysing the effects of previous actions.  


Artificial Intelligence is not a new concept. In fact, it has been present in our daily lives for a long time and is used by several companies. One of the best known is OpenAI, founded in 2015 by Elon Musk and Sam Altman, which develops software that demonstrates the potential of the technology in a practical way. One of the company’s products that has gained worldwide recognition is ChatGPT (Chat Generative Pre-trained Transformer) - a chatbot that answers any user question with impressive conversational accuracy. This bot can even produce prose, poetry or humour on demand, and even programming code. It even answered 21 technical questions in a law exam, some with a moral context.  





Source: Financial Review   


All of this is made possible by using big data, which means analysing large amounts of data on a large scale, allowing this chatbot to have a vast knowledge of society. The practical applications of this technology are vast and cover almost every aspect of human life. As you might expect, the amount of money invested worldwide in AI companies continues to grow, led by the US and China, where most of the talent, infrastructure and leadership in the field is concentrated.   



Source: Venture Beat


The investment made by Microsoft in OpenAI to accelerate progress in Artificial Intelligence is also of note. The goal of making OpenAI systems available as a platform for use by any organisation or industry is therefore clear. All these signs suggest that Artificial Intelligence is not only here to stay, but also promises to be a major development with the potential to change the world as we know it.


How Artificial Intelligence is changing the world of investment 


Artificial Intelligence is changing the way investors make decisions. Technological developments are enabling autonomous predictive analytics, opening the door to algorithm-based investment decisions.  


Until now, these algorithms could only make passive decisions based on a static set of rules. The impressive developments in the field of Artificial Intelligence and Machine Learning are making these programs capable of investing according to experience and market patterns. In other words, to change rules and assumptions according to actual experience, in a permanent cycle of optimisation and improvement.  


More than that, the technology even makes it possible to identify previously unknown patterns in the financial markets. Thanks to the power of Big Data, it is possible to analyse a vast amount of data, on a large scale, processing patterns unrecognisable by a human being or by traditional technology.  


But investing in AI doesn't "just" mean making decisions based on the predictions of increasingly sophisticated algorithms with the ability to learn on their own. It also offers investors unique opportunities to invest directly or indirectly in the companies that are leading this transformation.


How to invest in Artificial Intelligence  


Microsoft has been the most high-profile case, but many other large companies are making huge investments in Artificial Intelligence. Here are some examples of promising companies that are worth considering as part of the portfolio and that are expected to appreciate rapidly in value in the future.  


Meta Platforms Inc., the AI at the base of the metaverse  


Meta, the new identity of Facebook Inc. has long used Artificial Intelligence in its feeds and algorithms for ads on this social network. However, its work is going further. Mark Zuckeberg's company wants to pioneer the Metaverse - a reason that even led to the name change - a kind of virtual reality in which all aspects are managed by AI. In just six months, the company's share price has risen by around 40%, despite several job cuts. The future will tell if the bet on Metaverse will be justified, but for now the company is in full swing at the forefront of technology.  


Salesforce, the AI for sales teams


Salesforce kicked off 2023 on a high note, appreciating by about 40%. The world's largest CRM (Customer Relationship Management) platform uses Artificial Intelligence to improve companies' relationships with customers. The company has developed the "Salesforce Einstein”, which provides information to sales teams based on Artificial Intelligence and Machine Learning that informs strategies and aids decision making.  


Adobe, new content with AI 


Artificial Intelligence services from the Adobe giant, powered by the Adobe Sensei platform, help solve some of the biggest challenges in digital experiences. They make it easier to create and edit photos and videos, and bring to everyone a range of effects and features previously available only to professional designers. The result? An appreciation of more than 11% since the beginning of the year and a positive outlook. 


IBM, the return of "Watson


IBM is making a statement when it comes to Artificial Intelligence. One of its key projects is a customer service robot with human qualities. This is the "Watson Assistant", which understands people in different contexts and provides fast, consistent and accurate answers in any application, device or channel. It has appreciated moderately by 1% over the last 6 months, still outperforming brands such as Tesla.  


Microsoft, the right choice in OpenAI


Microsoft is the world's largest software company by turnover and the world’s second most valuable company, behind Apple. From the days of early versions of MS-DOS and Windows in the 1980s and 1990s, the company has moved into the world of search engines, hardware (such as laptops, smartphones, consoles and tablets) and even social networking sites like LinkedIn. But lately, the stakes in AI have been making the headlines. The investment made in OpenAI has proven to be farsighted. With more than 100 million users, the ChatGPT technology is already being integrated into the Bing search engine to challenge Goodle’s leadership (and digital advertising revenues), and has appreciated more than 13% over the last six months.   



Banco Carregosa, an expert in smart investments  


Keeping up with the rapid advances in AI can be challenging, even for savvy investors. The changes, as demonstrated by the examples being produced by OpenAI, are clearly disruptive and require expertise. The team of experts at Banco Carregosa is at the forefront of financial analysis, closely monitoring the changes and adapting strategic choices with pragmatism and a focus on the best solutions for each case. Contact us and benefit from the expertise of our advisors to protect and grow your wealth.