According to Wells Fargo, as many as 200,000 banking jobs will be replaced by artificial intelligence in the coming years. While this generally means a move to online banking instead of branch banks, no part of banking will be secure. This includes much of the work done by investment bankers. But, will AI replace investment bankers? That is not likely to happen. Investment bankers act in an advisory capacity to government and corporations in financial markets. They do not deal with individual investors where AI is most likely to replace jobs. What is likely to happen is that investment bankers will adopt many AI tools to assist in their work.
AI and Investment Banking
In the banking industry, it has become clear that artificial intelligence will level out the playing field between large and small operations. Much like the advent of personal computing brought advanced computational tools to everyone, AI will give small investment banking operations the tools former just available to the giants of the industry. AI is likely to make investment banking for precise, more efficient, and more profitable. Because AI systems learn as they go, there is less need to continually upgrade to smarter and more advanced products.
AI Return on Investment
The degree to which AI benefits any business operation will depend on how deeply the company invests in artificial intelligence. And, it will depend on how well the AI system is designed to address business issues, fix them, and learn from the experience. According to Forbes, not every business currently sees benefits from adding AI to their operations.
Among the 90% of companies that have made some investment in AI, fewer than 2 out of 5 report business gains from AI in the past three years. This number improves to 3 out of 5 when we include companies that have made significant investments in AI.
(Return On Artificial Intelligence: The Challenge And The Opportunity: Forbes)
The point is that when investment bankers or anyone wants to use AI to improve business operations, they need to adapt the AI to deal with the specific needs of their business and follow through with the necessary changes.
The Best AI Stocks to Invest In
If you want to benefit from artificial intelligence in the coming years, there are more options than employing AI in your business. The best AI stocks to invest in provide you with the opportunity to invest and increase your wealth without having to understand and deal with AI directly. US News provides a nice list of the best AI stocks to invest in.
- Nvidia Corp.
- Alphabet (formerly Google)
Some of these produce AI products to help businesses, some employ AI in their own businesses, and some do both. Choosing the right ones for you will depend on your specific needs.
Best AI Startups to Invest In
If your goal is to maximize your profits when investing in AI stocks, the best bet is to find promising startups. Picking several AI startups will reduce your odds of investing in a stock that fizzles out and will increase your odds of picking a winner. There is a short list of the best AI startups to invest in.
(Built in SF)
Tech history is full of promising companies that did not make the cut and apparent also-rans that moved on to dominate the industry. Picking a basket of these stocks might be the best way to profit from AI investment.
AI Stocks to Invest in Now
Companies that do well in AI or any sector hit the business news when their profits go up which is also when their share prices will soar. When you invest in a successful company you are betting that they will continue to do well and grow in multiples year after year. But, how do you pick AI stocks to invest in now before their share prices go up? An approach suggested by The Motley Fool is to pick established companies in high cost of entry business. Choose companies that are developing and integrating AI successfully into their businesses. Examples noted by The Fool include Nvidia, Apple, and Baidu.
(Three Top Artificial Intelligence Stocks to Buy Right Now: The Motley Fool)
How to Invest in AI and Robotics
If you want to profit from investing in any stock or sector, you will do best if you understand what they do and how that will lead to long term profits. This is the standard intrinsic stock value approach to investing in stocks. If you believe in the AI sector and expect to see growth over the years, there are ETFs that you can invest in and not have to worry about deciding if an individual investment is a good idea. And if you want to choose an individual AI or robotics stock, you need to find out what they are making and how much money they will gain. Some applications of AI can be applied to businesses with huge profit margins and others to businesses that don’t make much money. Your job is to decide who will dominate a profitable sector for AI applications.
The No 1 AI Stock to Invest in Right Now
If you would like to avoid a lot of time and effort finding the best AI stock for today, is there a best choice? The No 1 AI stock to invest in right now according to multiple sources is Nvidia. This company makes the chips that lie at the heart of most AI applications. As their chips improve, so does AI. They are in a high cost of entry business and a modern version of selling picks and shovels when everyone else is digging for gold.
Will AI Replace Investment Bankers?
Will AI Replace Investment Bankers? – DOC