ChatGPT and AI seem to be everywhere these days, but what do they really mean for asset management and financial advisors? Does AI arrive as just a theme, or can it really have an immediate impact on financial advisors’ work?
On Wednesday, VettaFi’s Dave Nadig hosted a webcast on AI titled “Beyond Chat: How AI is Impacting Real World Investing Right Now.” Nadig, VettaFi’s financial futurist, invited ROBO Global senior research analyst Zeno Mercer and ReSolve Asset Management CIO Adam Butler to join him.
First of all, investors and advisors should recognize the varied ways in which AI will impact economic growth. Factors such as low penetration and increasing M&A position AI catalyze some serious growth. Areas set to benefit include AI infrastructure like semiconductors and cloud providers, as well as AI apps and services in e-commerce, consulting, healthcare, and more.
“What we’re seeing right now is that each technical wave that’s coming through is leveling up the game,” Mercer said.
Investors looking for pure-play options on AI without having to own names like Nvidia (NVDA) or Microsoft (MSFT) do have options. Responding to a question from Nadig on the topic, Mercer underlined ROBO Global’s scoring process about AI. The firm considers factors like market leadership, revenue purity, and technological leadership to assess AI-related names.
Mercer added that advisors keep an eye out for firms that may also be acquisition targets for MSFT rivals. Examples include firms like Pure Storage and Arista, which are working to speed up AI chatbots like ChatGPT.