AI Tech Enthusiasm Gets Reality Check for Investors
Analysts have warned against undue optimism about artificial intelligence (AI) technology in stock investment, urging a focus on areas with more certainty and less ambiguity.
The American investment media outlet, The Motley Fool, issued a warning in an investment report on the 28th (local time), stating, “While the long-term growth potential of AI is boundless, investors should temper their expectations.”
The report continued, “Investors should pay attention to areas with less ambiguity and more certainty,” and advised, “They should carefully examine the actual financial status, business situation, and whether the company’s growth has been realized.”
In the process, The Motley Fool introduced a statement by Sam Altman, the CEO of OpenAI. Altman expressed concern about excessive expectations for AI technology at the World Economic Forum (WEF or Davos Forum) held in Davos, Switzerland, on the 18th.
Altman predicted, “AI will change the world less than we think, and this also applies to the job market. Everyone’s job will operate at a slightly higher abstract level.”
According to a recent International Monetary Fund (IMF) study, AI could affect 40% of jobs worldwide. In developed countries, this ratio could increase to 60%. However, prevailing analysis suggests that it will positively impact productivity across all industries.
Last year, stock prices of related companies skyrocketed due to expectations of a surge in AI demand. For instance, Microsoft’s stock price rose by 57% over the past year, while Palantir Technologies’ stock price surged by 167%. The stock price of C3.ai increased by 157%.
The Motley Fool emphasized, “While AI stocks have tremendous potential, investors should be careful not to build castles in the air. In the AI gold rush, wise investors do not just follow the hype, but dig for the truth.”