The transformative potential of artificial intelligence (AI) on various sectors, including the economy and healthcare, cannot be emphasized enough, according to senior executives from BlackRock and Invesco during their discussions at the Exchange ETF conference in Miami Beach, Florida, on February 12.
Jay Jacobs, BlackRock's U.S. Head of Thematics and Active Equity ETFs, highlighted AI as a pivotal "platform technology" capable of revolutionizing current industries and catalyzing the emergence of new ones, much like the transformative impact of 4G technology on mobile capabilities, enabling online shopping, social media engagement, and travel bookings directly from smartphones.
Echoing Jacobs' sentiment, Ryan McCormack, Invesco U.S.'s Senior Factor and Core Equity ETF Strategist, pointed out that AI's far-reaching influence extends beyond foundational advancements, fostering growth in related sectors such as semiconductors, software development, and cybersecurity, areas ripe for investment opportunities.
The discourse also ventured into the significant role AI is poised to play in healthcare innovation, especially in light of the demographic shift towards an older population. Jacobs noted that with 2024 expected to witness an unprecedented number of individuals surpassing the age of 65, there exists a substantial opportunity for medical advancements aimed at this demographic, with AI serving as a critical enabler.
The development of new drugs, currently a costly and time-consuming process averaging $2 billion and a decade from concept to market, stands to benefit immensely from AI integration. Predictions suggest AI could potentially halve both the cost and development time, underscoring healthcare as a primary investment theme not only due to the aging population but also because of its intersection with AI and other technological advancements.
