When discussing AI, the spotlight often falls on the big players like Microsoft, Tesla, and NVIDIA. However, according to Matthew Bartolini, managing director at State Street Global Advisors, the real innovation in AI can be found in companies beneath the surface.
Bartolini, speaking at VettaFi’s AI Symposium, emphasized the importance of looking beyond the large-cap tech firms to discover the wide range of AI applications. Industries such as information technology, industrials, consumer staples, and consumer discretionary are all tapping into the power of AI. From research and labs to cloud computing and end-user applications, AI is transforming various sectors.
One example cited by Bartolini is Xylem, a global water technology company that leverages AI to detect water leakage in pipes and sewers. On the other hand, C3.ai enables end-users like Xylem to access advanced research capabilities. These examples demonstrate the versatility of AI and how it can be applied across different industries.
Srineel Jalagani, senior director at S&P Dow Jones Indices, also highlighted the significance of AI in constructing their indices. Since acquiring Kensho Technologies, an analytics firm specializing in next-gen technology, AI has become a fundamental pillar for S&P Dow Jones Indices. Jalagani explained that AI serves as a productivity multiplier and efficiency enhancer, revolutionizing the process of stock selection and removing subjectivity.
Investors looking to capitalize on AI should consider the SPDR S&P Kensho New Economies Composite ETF (KOMP). This ETF employs AI to identify companies involved in developing and producing new economy products and services. Another option is the SPDR S&P Kensho Intelligent Structures ETF (SIMS), which targets companies driving innovation in intelligent infrastructure.
AI is not confined to a single sector but rather permeates through various industries, shaping the future of technology and driving innovation. It allows us to see the interconnectedness between different fields, revolutionizing processes and opening up new opportunities.
Frequently Asked Questions (FAQ)
1. What are some industries using AI beyond the big tech companies?
AI is being adopted by industries such as information technology, industrials, consumer staples, and consumer discretionary. It is utilized for research & labs, cloud computing, and end-user applications.
2. Can you provide an example of a company using AI in a unique way?
Xylem, a global water technology company, uses AI to detect water leakage in pipes and sewers. This demonstrates how AI is leveraged in a non-traditional industry to solve real-world problems.
3. How does AI benefit stock selection?
AI serves as a productivity multiplier and efficiency enhancer, removing subjectivity from the laborious manual process of picking stocks. It allows for better analysis of the context of specific themes, enabling the selection of global stocks.
4. Are there any investment opportunities related to AI?
Investors looking to invest in companies working on AI can consider the SPDR S&P Kensho New Economies Composite ETF (KOMP) and the SPDR S&P Kensho Intelligent Structures ETF (SIMS). These ETFs identify companies involved in developing new economy products and services, as well as driving innovation in intelligent infrastructure, respectively.