Market Minute
February 2023 – By Scott Rosenquist, CFA®
Artificial intelligence is no longer mentioned only among Science Fiction fans. The release of OpenAI’s ChatGPT in November last year brought artificial intelligence to the forefront for many, but even more so for investors as they scramble to figure out the implications of such technology.
While artificial intelligence (AI) is not a new topic, the release of ChatGPT shows interest in AI as it has rapidly gained users since it launched. There are projections of 100 million monthly active users in January making it one of the fastest-growing applications ever. OpenAI was founded in 2015 and backed by high-profile investors including Microsoft which recently increased its partnership with a multiyear, multibillion-dollar investment. ChatGPT is a chatbot that can answer questions, and compose content such as stories or articles (not this one) in a natural, conversational manner. It is fun to use, but there are limitations, including the website and server capacity and receiving incorrect information.
The reception from investors has led to a lot of excitement as they look for beneficiaries of this trend. It has the full attention of the largest technology companies as they schedule releases of their own versions of this technology. While the full implications of AI are not yet known, I expect to hear more about this in the coming months as companies continue to build on the momentum. Stay tuned.
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