Ninety nine percent of institutional investors and wealth managers believe that the artificial intelligence (AI) market is on the brink of a seismic shift, according to a new study by fund manager Robocap.
More than a quarter (28%) of investors and wealth managers surveyed strongly agree that groundbreaking advances in computer power, big data and next gen models will cause an explosion of investment in AI-driven automation, precision medicine, autonomous systems, and ethical AI governance – and almost three quarters (71%) slightly agree with this view.
Dell’Oro Group forecasts AI has the potential to generate more than $1-trillion dollars annually in AI-related infrastructure spending in cloud and enterprise data centres over the next four years, with worldwide data centre capex projected to grow at a 24% compound annual growth rate (CAGR) by 2028.
The research finds that more than half (55%) of survey respondents expect the AI market to reach a global market size of between $2,53-trillion and $3-trillion by 2033, while 44% say it will reach around $2,53-trillion.
Meanwhile, Boston Consulting Group estimates the global robotics market to be valued at between $160-billion to $260-billion by 2030. Almost half (49%) of professional investors and wealth managers surveyed believe the robotics market will be worth between $385-billion and $390-billion by 2033; 42% say between $383-billion and $385-billion; 5% around $383,89-billion; and 4% say between $390-billion and $400-billion.
Despite strong predictions for market growth globally, 35% of institutional investors and wealth managers questioned strongly agree and 65% slightly agree that regulation in the UK and EU around AI and robotics is too stringent which has curtailed creativity and innovation. This compares to other markets such as the US and China where more relaxed legislation has been to the benefit of leading AI and robotics companies based there.
While believing regulation has stifled AI and robotics in the UK, respondents to the survey expressed some concern about these markets. Eight out of 10 investors surveyed are concerned about privacy and data security, while nearly three-quarters (71%) are worried about technological vulnerabilities and the potential for AI to be hacked or manipulated, highlighting the growing importance of cybersecurity.
Two-thirds of respondents say they are most concerned about autonomous AI systems making decisions without human intervention, while 61% are focused on the potential for job displacement and a negative impact on employment.
A further 59% are concerned about the ethical implications and potential misuse of AI; 58% believe the technology could be adversely used for surveillance or control purposes; 45% are concerned about the unintended consequences and unforeseen risks of AI deployment; 42% are focused on the uncertain long-term societal impacts of AI; and nearly one-fifth (18%) have concerns about the potential for AI to outperform or surpass human capabilities.
“We have already seen huge growth in the AI and robotics sectors – and given the major advances in computing power, big data, and AI models we agree there will be an explosion in investment in the next decade,” says Jonathan Cohen, founder and CIO at Robocap. “The AI and robotics investment universe is growing all the time and requires the full attention of an investment team who are specialised in this rapidly expanding area.”