A Warning About “Artificial Intelligence Stocks”

We’ve been writing about emerging technology investing since 2004, and the one thing that grinds our gears more than anything else is to see well-intentioned investors get fleeced. Notice how we say investors, not speculators. As a speculator, you need no warnings because you approach everything as you would a roulette wheel. For investors though, the intention is to give money to a venture that promises to give you back more money at a much later date in the future. It’s hard to see any emerging technology company doing this properly in under a decade. That’s why we look at long time horizons when it comes to investing in emerging technologies like artificial intelligence.

It wasn’t but 6 months ago that we wrote an article titled “Investing in Artificial Intelligence (AI) Stocks is BS” while pointing out how all the mainstream pundits are taking an “Invest in Everything with Google” approach to AI stocks. Sure, you can invest in Amazon, Google, and IBM and then claim that you’re “invested in AI stocks” but the fact is that you’re not. While these companies use artificial intelligence, they’re hardly pure plays on the AI theme. We concluded that “You Can’t Invest in Artificial Intelligence Yet” with the exception being