Artificial intelligence (AI) is more than just another trendy fad in tech that’s driving investors to chase red-hot momentum plays in various corners of the market. Indeed, OpenAI and its incredibly innovation ChatGPT large language model (LLM) — or chatbot — have profound potential. Heck, I’d argue it’s beyond profound.
If you’ve had the opportunity to give the model a go over the past year, you likely are well aware of its potential. As more LLMs come on the market, specifically tailored to certain tasks and industries, we may very well be on the cusp of an AI revolution. Given the pace of layoffs within the tech scene, questions linger as to what the consequences of productivity-enhancing AI will be.
Undoubtedly, it’d be ideal if everybody benefited by being augmented with some sort of AI model. That said, firms may stand to eliminate parts of their workforces in an effort to jolt efficiencies. Though ChatGPT in its current state may not be the profound job replacer that many of us may have feared, it is quite jarring that this is the least capable that AI will ever be. It only gets smarter from here. And with that, the applications are tremendous and far-reaching.
Canadian investors: Venturing into the U.S. market for AI exposure
As a Canadian investor, it can be tough to gain enough exposure to the technology. Even after a year of incredible gains, I’d argue there’s still opportunity within the AI space. As long as you’re able to value a firm, I think venturing south of the border for AI exposure is a wise idea.
Will there be plunges, crashes, and corrections along the way as overheated AI stocks fall back to Earth while others rise to glory?
You should expect such volatility when it comes to any exciting technology. But if you’ve got the stomach, I think investors should consider top-tier names in the AI scene right now. Let’s look at just two of them.
Salesforce (NYSE:CRM) is just one company that I think is worth buying shares in right now, even after an unbelievable year of gains. The company seems to have shifted gears to AI, even before ChatGPT was a thing for everyday users. The company’s Einstein AI product isn’t exactly a new thing. However, it is getting better for enterprise users.
Though we may not be able to test out the waters like a consumer-facing LLM, I think it’s a mistake to discount the capabilities of Salesforce’s AI offerings. With the genius Marc Benioff running the show, I’d argue Salesforce is one of the AI stocks to own for the next 10 years.
Amazon (NASDAQ:AMZN) is an e-commerce company that found success in video streaming, the cloud, logistics, and just about everything the firm has touched. It’s a disruptor, and it’s grabbing that AI bull by the horns.
Over the coming years, I’d look for Amazon to stand tall with its AI products, which may be more capable than that of its AI peers, given its impressive data sets and top-calibre AI talent. Like Salesforce, Amazon has been active in the AI world well before ChatGPT exploded in the early part of 2023.