Investors seeking gains in today’s “unusual” market may find artificial intelligence to be a blessing.
In today’s exceptional market conditions, BlackRock, a worldwide investment corporation that oversees a sizeable $10 trillion in assets, has identified artificial intelligence (AI) as a “mega force” with the potential to produce substantial returns for investors. The BlackRock Investment Institute’s mid-year outlook report for the corporation made this remark.
The paper makes the case for more investment in AI by highlighting potential disruptive themes within the AI sector that could fuel its explosive expansion in the years to come.
The S&P 500, the index that measures the largest US corporations, has seen an increase in the concentration of gains, according to BlackRock’s analysis. The company proposes that one approach to benefit from this concentration is to invest in artificial intelligence.
Related: BlackRock Nears Bitcoin ETF Filing, Could Open Door for Institutional Investors
Automation is one of the main advantages of AI, according to the investment team at BlackRock. Although they acknowledge that white-collar positions are more susceptible to automation, they think the consequent cost savings can dramatically raise profit margins, especially for businesses with high staff costs and easily automatable tasks.
The team also emphasizes how AI may help businesses that have private data, referring to it as a “gold mine.” AI-powered tools can assist in revealing the value of buried data and allow businesses to create novel new business models.
The paper outlines a number of important factors that will contribute to growth over the next ten years, such as the transition to low-carbon economies globally, aging populations, and the quickly changing financial system.
Although BlackRock is positive on AI, it has recently started to focus on Bitcoin. The company requested clearance for the first spot Bitcoin trust product by submitting an application to the Securities and Exchange Commission (SEC) on June 15 for a spot Bitcoin Exchange Traded Fund (ETF).
Related: Institutional Investors move into Bitcoin as BlackRock Files for ETF
BlackRock’s chances of getting its Bitcoin ETF application approved are estimated by leading investment analysts at Bloomberg to be 50%, emphasizing the importance of this move in the bitcoin market.