Move Over, ChatGPT: Stock Picks For Leveraging The Power Of AI In Health Care, Cybersecurity
Generative artificial intelligence has taken the world by storm in 2023.
Programs like Open AI‘s ChatGPT, with the ability to write code and produce realistic writing in multiple styles, are bound to change the way humans interact with technology.
Read also: ChatGPT Just Got Banned In Parts Of Europe, Isn’t It Supposed To Be A Gold Rush?
The Wider World Of AI: When Microsoft Corp (NASDAQ:MSFT) announced it would be including a version of ChatGPT to interact with users of its Bing search engine, investors began considering the Bill Gates-founded company as a worthy competitor of Alphabet Inc (NASDAQ:GOOG)’s Google in the dominance of web search.
Yet for all the fuss that generative AI programs like ChatGPT have caused over the past few months, other types of artificial intelligence are also gaining ground as potential value generators in the near future.
According to The Street Sheet newsletter, AI's ability to interpret big data is at the forefront of this technology's disruptive potential. Industries where big data can be leveraged are the most likely to become affected.
In the health care sector, AI can be used to speed up drug discovery in a process called in-silico, which precedes in-vitro, animal and human trials. Companies in the psychedelics space, for instance, have been looking at in-silico drug discovery for years, using AI-assisted tools to come up with thousands of new drug candidates at a time.
AI could also be leveraged to create precision drugs based on a patient's particular genome.
The Street Sheet shared stock picks for investors searching to gain exposure to AI in the health care market, where it said these ETFs provide the best risk-reward ratio:
- The iShares Genomics Immunology and Healthcare ETF (NYSE:IDNA), which has $140 million in assets under management and an expense ratio of just 0.47%.
- The ARK Genomic Revolution ETF (BATS:ARKG), with around $2 billion in assets under management and an expense ratio of 0.75%.
Another industry that can greatly benefit from AI's ability to rapidly handle large data sets is cybersecurity. One way in which AI can be leveraged in this field is to predict when and where cyberattacks are going to occur.
ETFs that can provide exposure to this application of AI technology are:
- The iShares Cybersecurity & Tech ETF (NYSE:IHAK)
- The ETFMG Prime Cyber Security ETF (NYSE:HACK)
- The Global X Cybersecurity ETF (NASDAQ:BUG)
Photo by Alex Knight on Unsplash.