Don’t be fooled – no one can predict the profitability of the AI boom

Lest we forget, deputy prime minister Oliver Dowden once expressed that AI will have greater effects on society than the Industrial Revolution. 

But what is it about the AI boom that has everyone talking? AI is defined by machine learning processes whereby algorithms that learn to generate text, images, video and code use data and prior programming to create outputs. 

Generative AI, for instance, sees services like ChatGPT producing near-human responses to simple prompts via the cutting-edge language model GPT-3, which can result in efficiency gains and productivity growth through the automation of tasks or cost reductions.

However, 65pc of British respondents in a survey by Ipsos have stated that products and services using AI make them nervous. Notably, growth in US stock markets has outstripped the UK’s, with the benchmark FTSE 100 lagging behind with growth of just 3pc in the year so far.

Yet, many British investors remain interested in identifying areas of potential within this cutting-edge technology.

Is it worth putting money into companies employing artificial intelligence? ChatGPT in specific is not publicly traded so investors cannot currently buy shares in the company since its developer OpenAI is registered as a private corporation.

Instead, this has led to investor focus on alternative AI services such as Berkshire Grey, whose share price rose 103pc last year.