Artificial intelligence (AI) has been the buzzword of the year, but investors are now looking beyond foundational technologies like ChatGPT to identify how companies in other industries could benefit from applying the concept.
Forbes Iconoclast Summit
Dozens of influential investors and business leaders converged on Pier 60 in Manhattan for the second annual Forbes Iconoclast Summit on June 12 to discuss how they’re adjusting their portfolios and steering their companies and clients through the tumultuous period in global finance. Panelists including Goldman Sachs CEO David Solomon and billionaire Ray Dalio shared thoughts on large language models and generative artificial intelligence.
The Real AI Cycle
Amir Salek, senior managing director at Cerberus Capital Management, believes that the current AI cycle is real, as the power of computers has finally pushed AI beyond what was considered possible. Julian Salisbury, chief investment officer at Goldman Sachs Asset and Wealth Management, added that AI presents a ‘confluence of performance improvements’ and is changing both business operations and investment strategies.
Seeking AI Supercharged Industries
Investors are now focusing on finding businesses in other sectors that can leverage AI concepts to enhance their results. Salisbury mentioned that they are spending less time on large capital-intensive endeavors and more on applying AI technologies in industries like healthcare and education to achieve capital-efficient outcomes.
AI Integration in Emerging Markets
Noor Sweid, founder and managing partner of Global Ventures, emphasized the potential of AI applications in emerging markets, where it can be used to tackle issues like food security in Africa and improve financial access through credit scoring systems. Emerging markets have the advantage of not being burdened by legacy systems, which makes integrating AI technologies comparatively easier.
A Cautious Approach
While acknowledging the potential of AI, panelists also expressed caution, predicting a mixed journey with the technology’s growth. Salisbury said that there will be both value creation and destruction and a division between those who embrace AI and those who choose to ignore it.
