2018 is already a year that will offer many avenues that financial planners and business leaders couldn’t have predicted some five years ago. The steep rise of technology and the way digital and social channels have shaken up traditional spheres have thrown strategies out of the window.
Cryptocurrency, AI, and other tech-based companies that allow things to become ‘smart’ seem like the future, and many are attempting to claim a slice of the pie. But is investing in new tech the best way to move forwards for the future?
Globally, AI software is predicted to grow from $1.38 billion (2016) to $59.75 billion (2025), with a compound annual growth rate of 52%. As a result, experts predict that Canadian gross value added growth rate will boost from 2.1% to 3.5%, and labour productivity will increase by 23%. Statistically speaking, AI investment looks shiny for the future. Evidence from around the world indicates that companies utilising AI are doing well. But, rather than going all in, when it comes to investment, sometimes it’s better to think like a slots player.
The progressive slot parallel
Thinking like a slots player may seem like off-the-wall business advice, but by taking this approach, decisions can be simplified – much the same way these online casino games work with imperfect information, which is what the growth in tech has rendered standard business planning. The best way to think of AI investment is to think of it like progressive slots. But what are progressive slots? You will find out now.
Progressive slots allow players to all pool their investments as one, with one player eventually winning the entire amount. Much like the way a lottery works, while there are other payouts throughout, progressive slots run keep the total jackpot rolling over through multiple rounds of the slot. So, in terms of investing, the greater the amount of people investing in a possible new technology, the more successful the sector will be, and the greater eventual payout. The more investment AI will receive, the greater the capabilities, and the greater the profit. This in turn will bump up the value of the investment and the cycle will continue.
Get the AI jackpot
The reason progressive slots work so well is because there is a guarantee that the jackpot will rise in line with the money added to it, meaning someone will end up with it, and others will win along the way – but more money than they put in. Investment in AI is similar, especially given the scope and breadth of what can be done under the remit of AI and for the industry and sector. Given the predicted market expansion, AI seems like a fruitful investment, and one that will not only reap dividends in the future, but one that will contribute to a positive growth of technology.
So, by thinking like a slot player and investing in a technology with a greater scope and resulting in a greater end product pay-out, so to speak, investment opportunities can be more effective. While any investment acts as a gamble, to choose one that might offer a better pay-out in the long run, regardless of the actions of the market is the best course of action.