While Big Tech stocks like Microsoft, Tesla, and Meta Platforms have been high performers this year, there are other avenues to invest in the artificial intelligence (A.I.) sector beyond these well-known names. Investors seeking to diversify their portfolio while capitalizing on the A.I. rally can explore industries that indirectly benefit from the A.I. craze. According to two ETF experts, Rich Lee, head of ETF trading at Baird, and Todd Rosenbluth, head of research at VettaFi, there is a broader range of sectors experiencing A.I. gains than one might initially assume. This article delves into the emerging opportunities in healthcare, eCommerce, robotics, and fintech, as A.I. continues to empower various industries beyond the tech sector.
A.I. Gains in Diverse Industries
As A.I. technology becomes increasingly prevalent, its impact reaches far beyond the traditional tech sector. Both Lee and Rosenbluth highlight the emergence of trends in various industries that are benefitting from A.I. advancements.
Healthcare and eCommerce: Silent Beneficiaries of A.I.
Beyond the tech giants, healthcare and eCommerce companies are quietly reaping the rewards of A.I. integration. Rosenbluth notes a growing trend towards A.I. implementation in the healthcare sector, enhancing diagnostics, treatment planning, and patient care. Similarly, eCommerce companies are leveraging A.I. to optimize customer experiences, personalize recommendations, and streamline logistics.
The Rise of Robotics and Automation
In the past four months, the robotics industry has seen consistent growth and increased investment. Rosenbluth highlights the significance of ETFs like ROBO and BOTZ, which provide exposure to this expanding sector. The integration of A.I. with robotics is revolutionizing the industrial space, making processes more efficient and opening up new opportunities for growth.
Fintech: The Future Beneficiary of A.I.
The financial technology space, or fintech, is poised to be a major beneficiary of A.I.’s advancements. Rosenbluth explains how A.I. will improve financial advisors’ performance, enhance information sorting for investors, and streamline transaction processing. As A.I. becomes a driving force in fintech, the sector is expected to experience substantial growth and innovation.
A.I. Penetrating the Industrial Sector
Lee emphasizes that A.I. is increasingly finding its way into the industrial sector, transforming everyday workflows and operations. Industrial companies are actively seeking A.I. solutions to improve automation and processing efficiency, leading to gains in productivity and profitability.
A.I. as an Integral Part of Industrial Processes
With a focus on better processing through automation, the industrial sector is recognizing the potential of A.I. integration. Lee explains that to achieve efficiency gains, businesses must incorporate A.I. into their operational processes. As a result, A.I. is penetrating sectors and industries traditionally not associated with technology or A.I.
Conclusion
The world of A.I. investments extends far beyond the confines of Big Tech. Investors looking to diversify their portfolio and participate in the A.I. rally can explore various industries that are benefitting from A.I. integration. From healthcare and eCommerce to the robotics and industrial sectors, A.I. is empowering businesses, revolutionizing workflows, and driving innovation. As A.I. continues to reshape industries, savvy investors can capitalize on the transformative potential of this technology, making it an essential component of modern investment strategies.
