The Future of Automation and Robotics
Automation is the use of technology to perform tasks without human intervention.
Automation has become increasingly important to business everyday life in recent years.
The benefits of automation are becoming evident across several industries, from manufacturing, transportation, retail, healthcare, and finance.
Automation and robotics provide investors with a huge opportunity to profit from a rapidly growing industry.
Investment Opportunities in the Next Decade
The robotics industry is anticipated to grow at a compound annual rate of 22.8% and to be worth $214.68 billion by 2030 according to Market Research Future.
The fund seeks to benefit from the growing adoption of robotics and automation in several areas of the economy.
Machines are capable of many tasks, and they are starting to gain mastery over high-level intellectual tasks like writing.
For example, ChatGPT is due to disrupt various industries. It’s built on OpenAI’s GPT-3 family of large language models which generate human-like text.
In November 2022, ChatGPT was released and has since gathered millions of users.
Data collected from ChatGPT users will enable the system to improve as it learns.
The company expects to disrupt freelancer writers and to take market share away from Google, the search engine monopoly.
However, Google is also developing artificial general intelligence (AGI) technology.
How to Invest in Open AI and ChatGPT
The company behind ChatGPT is privately owned which makes direct investment difficult at this point.
Our fund owns Microsoft which has itself invested US$1 billion into ChatGPT creator OpenAI in 2019, giving us indirect exposure to ChatGPT.
In addition, Microsoft is initiating investing a further $10 billion which will increase our exposure if the investment succeeds.
Our fund owns Nvidia and Alphabet (Google) which are individually working towards advancing their artificial intelligence technology.
Deep Learning is a type of machine learning and artificial intelligence technique that mimics how humans learn.
It is creating the next generation of computing platforms and enables humans to become superhuman to solve some of the most critical challenges.
Deep learning, for example, is a key technology behind autonomous cars, enabling them to distinguish between pedestrian and lamp post signs.
The technology plays a key role in voice control devices, such as smartphones. Additionally, it is used in aerospace, medical research, industrial automation, and electronics.
The rise of automation and robotics is predicted to significantly change the way we work and create millions of jobs worldwide.
For example, in healthcare robots are used in surgical operations with advanced artificial intelligence (AI), for emergency medical purposes to deliver medication and improve patient care.
Automation is also changing the way we bank and manage our money. It makes it easy to use online banking, and mobile apps to check your account balances, pay bills, and transfer money from anywhere.
Robo advisors and automated investment advisers use algorithms to invest your money based on our goals and risk tolerance.
The Impact of Artificial Intelligence on the Manufacturing Industry
3D printing and artificial intelligence (AI) is forecast to create the next generation of manufacturing.
Covid-19 has exposed some structural weaknesses and forced organisations to reassess their approach to global manufacturing and outsourcing.
However, using 3D printing has the potential to ease the disruption of the supply chain and shortages in the labour market.
For example, 3D printing is expected to transform manufacturing and reduce cost, errors, complexity and time to production.
Hyper-automation such as the introduction of AI, deep learning, event-driven software, and robotics is expected to replace manual work.
Robotic Process Automation (RPA) at its core, a combination of artificial intelligence (AI), machine learning, process analytics, and other technologies is making enterprise automation possible.
For example, it is already automating repeatable jobs such as financial processing and accounting reconciliation for financial institutions.
Companies are now relying on software robots to do all the mundane work.
That will improve efficiency and also reduce human errors and allow businesses to manage essential tasks.
Automation will empower humans to increase productivity and innovation, and also improve profitability for businesses.
We believe it will enable us to focus on more creative and high-value tasks.
We think automation will have a profound impact on our society, and especially as technology continues to advance, we expect to see a lot of disruption and opportunities in certain areas.
Our fund, the YFS Intelligent Wealth Fund will benefit from the rapid growth potential of those industries.
This blog is written by Awet Ghirmay. He is a Head of Investment Research at Minerva Money Management Limited.
The Fund is authorised in the United Kingdom and regulated by the Financial Conduct Authority (FCA) Firm Reference Number:754570.
Risk warnings
*The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
