ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Disruptive Technology Channel
  2. We Are at a Turning Point for AI
Disruptive Technology Channel
Share

We Are at a Turning Point for AI

ROBO GlobalMay 08, 2023
2023-05-08

Last week in the AI sphere has been marked by significant developments, such as the impact of ChatGPT on Chegg’s earnings, and the potential disruption of their business model and others by generative artificial intelligence (AI). In addition, recent earnings reports have shed light on the current state of the AI market. Furthermore, in a major move to support research and create guidelines for the AI era, the White House has announced a $140 million AI Hub, emphasizing the growing importance of this technology. 

At this crucial juncture, many established companies are witnessing their business models erode and experiencing narrower margins as products and services become increasingly commoditized. The ways in which we interact, consume, and share information are evolving rapidly. Increasingly, we will see both AI first companies as well as massive investment to automate and improve both product and operations, which should bolster companies providing services in the space. 

Although the initial focus may be on students cheating and plagiarizing, the greater opportunity lies in personalized AI tutoring and instruction across all areas of life, from education to specific skills, and even real-time assistance for projects. This could level the playing field in global education if the necessary infrastructure is deployed, causing ripple effects in socioeconomics and breaking down language barriers. 

Beyond education, we are at a turning point in how AI will be utilized and support global healthcare. Despite having access to some of the best healthcare in the world, the United States continues to face rising costs and stagnant outcomes. AI implementation at both the administrative and product levels is gradually reversing this trend and is expected to bring significant improvements to the quality of life, outcomes, and cost of healthcare. Examples include chronic disease diagnosis and treatment (such as Vertex and CRISPR Therapeutics’ work on solving T1D), early-stage liquid biopsy detection of cancer and subsequent precision medicine treatments, and AI analysis of wearable data to provide deeper insights into the true cause-and-effect relationships of health outcomes. 

As for the actual impact on investments and company performance, we are at the tipping point, witnessing the rise of AI infrastructure and enabled companies, and potential titans faltering. A quick glance at the earnings season so far shows remarkable resilience in industrial automation and continued planned investment and deployment of AI on a large scale. Companies that over-hired or realized that automation can enhance productivity per employee and enable better ROI are experiencing layoffs. This trend is also evident at the government level. Shopify announced layoffs and raised its outlook. Infineon surpassed expectations and increased its full-year forecast, while announcing a €5 billion investment to produce chips in Europe. Lemonade, the AI insurance company gaining popularity across the USA and recently expanding into Europe, exceeded expectations with 60% Y/Y gross earned premium and gross profit, and has experienced a reversal from the valuation depreciation seen in high-potential growth companies in 2022. 

VettaFi recently acquired the ROBO Global Artificial Intelligence Index, which is tracked by the ROBO Global Artificial Intelligence ETF (THNQ C+).

By Zeno Mercer

For more news, information, and analysis, visit our Disruptive Technology Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X