Rise of the Machines: the Artificial Intelligence Revolution


Mike Fox, Head of Sustainable Investment

27 March 2017

The greatest strides in AI have been made by building computer algorithms capable of analysing vast amounts of data and identifying patterns that a human brain could not, and then learning from these. Many hedge funds use this type of AI to analyse market data. Increasingly, AI is also replicating human behaviours and thinking: Google’s ‘AlphaGo’ and Carnegie Mellon University’s ‘Liberatus’ mark a new milestone in AI, as these systems have to use intuition and learn how to bluff.
Rapid advancements in AI have been driven by the same improvements in computing power that mean we can all now carry a supercomputer in our pocket. With technology companies spending more than ever before on research and development, the development in AI looks set to accelerate.   
Typical companies in which we like to invest stable, well-managed and innovative, whose products and services contribute to society, and which offer long-term value and growth potential. AI investment is prime for inclusion in portfolios, given its ability across a range of industries to benefit society and its recent rapid advancements. Applying our rigorous investment criteria, we believe AI offers many exciting opportunities for long-term investors.  

The greatest strides in Artificial Intelligence (AI) have been made by building computer algorithms capable of analysing vast amounts of data and identifying patterns that a human brain could not, and then learning from these. Many hedge funds use this type of AI to analyse market data. Increasingly, AI is also replicating human behaviours and thinking: Google’s ‘AlphaGo’ and Carnegie Mellon University’s ‘Liberatus’ mark a new milestone in AI, as these systems have to use intuition and learn how to bluff.

Rapid advancements in AI have been driven by the same improvements in computing power that mean we can all now carry a supercomputer in our pocket. With technology companies spending more than ever before on research and development, the development in AI looks set to accelerate.   

Typical companies in which we like to invest stable, well-managed and innovative, whose products and services contribute to society, and which offer long-term value and growth potential. AI investment is prime for inclusion in portfolios, given its ability across a range of industries to benefit society and its recent rapid advancements. Applying our rigorous investment criteria, we believe AI offers many exciting opportunities for long-term investors.  

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.