Capturing structural growth potential is not easy, but in uncertain markets, it's essential. Today, investors are eager to understand more about the potential opportunities in Artificial Intelligence (AI). Clyde Rossouw, Head of Quality at Ninety One, explains why exposure to higher-quality companies can successfully position investors for an AI-driven future.

Listen to this article 6 min Listen to this article 6 min

Moving at warp speed

AI - or machine learning - is not new. Humans have been automating work for nearly 300 years, with the industrial revolution supporting the transition from creating goods by hand to using machines. What has changed in recent years, however, is the explosion in the amount of data and computing power available, allowing researchers to build far more powerful models than previously thought possible.

AI will soon be able to do many things we thought only humans could do and do many things that humans simply cannot do. However, the difference between 'tourist' users and those that have been trained to use AI is profound. Proficiency at prompting is key; much like accessing a database, speaking the appropriate query language is vital to ensure accurate results.

AI is no longer just a tech story

From an investment perspective, AI use cases have been relatively narrow and focused on the technology sector - the advent of targeted adverts, for instance - with the large incumbent tech firms the main winners to date. But open source - code that is more widely available - has allowed...