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New technologies are on the rise. The opportunities afforded by AI.

Artificial intelligence has become a global buzzword. But will it live up to its promise? Sometimes yes and sometimes no. Should it be part of one’s investments? Absolutely. Artificial intelligence shows great promise and reward – as long as focus, rigor, and prudence are applied.

Where artificial intelligence is superior to humans

What is artificial intelligence (AI) great at – and where will it never replace humans? Simply put, artificial intelligence combines brute calculative power, clever human (sic) engineering, and sensors. Combining these three, AI is unsurpassed in the following fundamental tasks.

1. Pattern recognition

One of the most intriguing strengths of AI is to discover patterns faster and better than the human eye or mind will ever spot them. No surprise, AI is enormously successful in social media and online shopping. What’s more, there are obvious applications where AI is likely to thrive in years to come. Diagnostics is but one example. AI can rely on diverse and vaster experience than any family doctor and can use this faster and more efficiently. But make no mistake: AI will not replace your trusted MD. It will primarily make them better by handling the assessment of the facts.

2. Multiple optimization

This is one of the most daunting tasks and is found often, for example, in logistics. Which route and which forwarding agent is most likely to offer the fastest and most cost-effective delivery of goods to a certain client? That’s called multiple optimization – which means optimizing several objectives which are not always easily compatible. AI will give the answer faster than any human.

For this reason, without AI, autonomous mobility will always remain a distant dream. before we give all our cars to the machines, some critical aspects must be resolved – ones that only humans will ever be entrusted with. There are many more areas which will be transformed by AI. For example, it will make global payments more secure, cheaper, and easier.

What are the limits of artificial intelligence?

Let us therefore also consider where AI falls short of human intelligence. Take autonomous driving, for example. While the technological requirements are greatly advanced, the legal framework is not. How should a car react when it must choose between stopping for an animal while possibly endangering others? That’s where social norms and ethics come in. Which is beyond the scope of AI.

What’s more, AI lacks empathy and emotional intelligence. No matter how well a robot was designed, it will only do what it’s been programmed, trained, or has learned to do. In sum, AI lacks human intelligence: emotions, norms, values, empathy, true original thinking. Good enough, some things in life will never change.

How can investors take advantage of AI?

So, what does that mean for investors? AI is deeply and increasingly immersed in the way we live and work. Thus, there are many ways to invest into AI. The most sensible is arguably the prudent way: invest through diversified portfolios, across thematically chosen value chains, i.e. into the digitalization of healthcare, education, robotics, manufacturing, or infrastructure. AI has the power to transform all of these sectors in years to come.

Meanwhile, investors should be skeptical of those who overpromise as they are often prone to under delivering. This is a nascent Supertrend. It’s powerful. It’s promising. But it requires deep insight and professionalism to invest. Take advantage of the power of proven experts.

Our advice for you

In today’s world, sound advice is key to successfully managing your wealth. At Credit Suisse, your client advisor and a range of specialists are your direct contacts, providing access to our vast wealth management capabilities, as well as to our corporate finance and investment banking expertise. Find out precisely how you can benefit from our experience in a personal consultation. Call us at 0848 880 844.