Artificial Intelligence, a major challenge for the markets
Investment faces major challenges in the coming years. Perhaps one of the most relevant will be how to deal with the emergence and growth of Artificial Intelligence in the financial markets. According to the forecasts of Grand View Research, collected by Zonavalue, the Spanish marketplace specialising in advice, training and selected financial products, AI will grow at a compound annual rate of 40.2% in the stock market in the period 2021-2028.
Artificial Intelligence is one of the most disruptive topics in recent years and one that has aroused the greatest interest among investors, largely responsible for the continuity of the bullish rally experienced by technology companies in recent years.
The prospects for Artificial Intelligence have been boosted by the firm commitment of technology giants and other tech companies to make these processes more accessible within their business models. From accessibility to databases to progress in deep learning, to the implementation of neural networks and language processing.
Within the market as a whole, healthcare areas with a strong application of AI will experience the greatest evolution in the coming years, according to Zonavalue's forecasts. Robot-assisted surgery or preliminary diagnostics and imaging already frequently apply this knowledge, which means that it has a great deal of ground to cover and an advantage over other sectors in which AI is at a less mature stage and is taking its first steps. This is why experts see the sector as the one that will experience the greatest growth up to 2028.
Precisely, according to data from the firm, the good prospects for companies that have committed to this technology, not only in the health sector, have translated into a strong stock market boost. Its benchmark index, the Stoxx AI Global Artificial Intelligence, is trading at record highs thanks to a rise of over 40% in the last twelve months and will continue to rise over the next few years, according to market consensus forecasts.
Another feature that highlights the attractiveness of Artificial Intelligence is its decorrelation to technology companies. Future developments, should the forecasts come true, will exacerbate the disparate trend between the two sectors, as AI's potential is double that of the main tech companies.
In this context, as an example of their performance, Zonavalue compares the situation experienced in recent months in the technology Nasdaq100 and the Stoxx AI Global Artificial Intelligence. While the former has barely gained 1% since February 2021 following the ups and downs of the health crisis caused by COVID, the Stoxx AI Global Artificial Intelligence has risen by 15% with a similar trajectory since the beginning of the epidemic.
