Artificial intelligence: The next frontier

While the world has been fixated on following the soap opera of financial markets, a more profound and ubiquitous development has been taking place worldwide - the rapid development in artificial intelligence and the fourth industrial revolution, which we think will mark an endless wave of disruptions. We believe artificial intelligence (AI) is almost ready for wider adoption by businesses, in turn providing opportunities, but also risks for investors. With corporate longevity already on the decline - according to McKinsey, one in five listed companies in the US may not last beyond the next five years - the integration of AI into business applications will have significant investment implications in the years to come. Similar to how companies with no core assets could become leaders in their industries today, AI companies have the potential to become tomorrow's industry leaders. As noted by Mr Tom Goodwin of the French media group Havas, who would have imagined just a few years back that the world's largest taxi firm (Uber) would own no vehicles, the world's largest accommodation provider (Airbnb) would operate no rooms, while the world's most valuable media company (Facebook) would create no content?