The year is 1950. The month is October. Alan Turing – the generational genius who cracked the Enigma code and helped end World War II – has just introduced a novel concept.
It’s called the “Turing Test,” and it is aimed at answering the fundamental question: Can machines think?
The world laughs. Machines? Think for themselves? Not possible.
But the Turing Test sets in motion decades of research into the emerging field of Artificial Intelligence.
It is research conducted in some of the most prestigious labs in the world, by some of the smartest people in the world, collectively working to create a new class of computers and machines that can, indeed, think for themselves.
Fast forward 70 years.
AI is everywhere.
AI is in your phones. What do you think powers Siri? Or how does a phone recognize your face?
AI is in your applications. How does Google Maps know directions and optimal routes? How does it make real-time changes based on traffic? How does Spotify create hyper-personalized playlists for you? Or Netflix recommend movies?
AI is on your computers. How does Google suggest personalized search items for you? How do websites use chatbots that seem like real humans?
As it turns out, the world shouldn’t have laughed back in 1950.
The great Alan Turing ended up creating a robust foundation upon which seven decades of groundbreaking research has compounded… year after year… ultimately resulting in self-thinking computers and machines not just being a “thing” – but being everything today.
Make no mistake. This decades-in-the-making “AI Revolution” is just getting started.
That’s because the machine learning (ML) and natural language processing (NLP) models upon which AI is built are informed with data.
Basically, the more data they have, the better the models get, and the more capable the AI becomes.
In the AI world, data is everything.
The volume and granularity of data globally is exploding right now, mostly because every object in the world is becoming a data-producing device.
Dumb phones became smartphones and started producing bunches of phone usage data.
Dumb cars became smart cars and started producing bunches of driving data.
Dumb apps became smart apps and started producing bunches of consumer preference data.
Dumb watches became smart watches and started producing bunches of fitness data.
Get the point?
As we’ve sprinted into the “Smart World” – where every object is a data-producing smart device – the amount and speed of data that AI algorithms have access to has exploded, making those AI algos more capable than ever…
Why else do you think AI has started popping up everywhere in recent years? It’s because 90% of the world’s data was generated in the last two years alone.
More data. Better ML and NLP models. Smarter AI.
It’s that simple.
And guess what? The world isn’t going to take any steps back in terms of this “smart” pivot. No. We love our smartphones, and smart cars, and smartwatches too much.
Instead, society is going to accelerate in this transition. Globally, the world produces about 2.5 exabytes of data per day today. By 2025, that number is expected to rise to 463 exabytes.
Let’s go back to our process…
More data. Better ML and NLP models. Smarter AI.
Thus, as the volume of data produced daily soars more than 185X over the next five years, ML and NLP models will get 185X better (more or less), and AI machines will get 185X smarter (more or less).
Folks… the AI Revolution is just getting started.
As my friends in the AI and robotics fields like to remind me: Most things a human does, a machine will be able to do better, faster, and cheaper. If not now, then soon.
Given the advancements AI has made over the past few years with the help of data – and the huge flood of data set to come online over the next few years – I’m inclined in believe them.
Eventually – and inevitably – the world will be run by hyperefficient and hyperintelligent AI.
I’m not alone in thinking this. Gartner predicts that 69% of routine office work will be fully automated by 2024, while the World Economic Forum has said that robots will handle 52% of current work tasks by 2025.
The AI Revolution is coming – and it’s going to be the biggest revolution you’ve ever seen in your lifetime.
Now the question remains: What’s the best way to play the AI Revolution?
The blue-chip tech giants are all making inroads with AI. Buying their stocks guarantees you high-quality exposure to the AI Revolution. I’m talking Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Adobe (NASDAQ:ADBE), and Apple (NASDAQ:AAPL).
But my favorite way to play the AI revolution is through AI software companies, since they are more specialized and singularly focused, and therefore, offer higher upside potential. Names like Appian (NASDAQ:APPN), Splunk (NASDAQ:SPLK), and The Trade Desk (NASDAQ:TTD) stand out from the pack.
Yet… the best way to play the AI revolution is with C3.ai (NYSE:AI), an enterprise AI software company that is essentially democratizing AI applications so that any company, of any size, can scale AI capability throughout the enterprise.
With C3.ai leading the way, all of these high-quality AI stocks will power significantly higher over the next decade as the AI Revolution revs into hypergrowth mode.
Will you get a few 100% winners?
Absolutely. You will probably even get a few 10X winners…
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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