A&I Wealth Management > Blog > Financial Advice Services > Artificial Intelligence and What it Means for Your Investments and Your Future

“The next 10 years will bring more change than the last 30, 40 or 50 years. I cannot overstate how important these changes will be.” 

Ashim Mehra

Artificial Intelligence Introduction

We have had two great presentations from two different companies investing in AI.

Ashim Mehra gave us a great introduction to the power of artificial intelligence to change the way we live. We learned the basics, and then learned some more complicated details on top of that. Ashim is a portfolio manager with Baron Capital, and an expert on artificial intelligence. 

Fundamentally, AI is a technology enabler. Ashim drew a nice picture, shown below, of the stack of technology. AI will accelerate the creation of almost every type of business. Plus, artificial intelligence is creating new businesses on its own.

Ashim compares the stack to picks and shovels. When you build a building, you start with picks and shovels. And that is an analogy for where we are with AI today, at the earliest stage. “This stack is the biggest picks and shovels opportunity I’ve ever seen,” says Ashim.

AI will change the way healthcare is done. Think about how the data on your health sits in silos, in different medical offices. AI will make it so that your data can be quickly gathered and more organized and useful.

Ashim sees opportunities in robotics, automation, transportation particularly cars, and even food industries.AI is the largest investment theme of his career, says Ashim.

How to Try AI for Yourself

If you want to try AI for yourself, for free, try:




Artificial Intelligence Technology Stack

If you are interested in AI, you want to understand the tech stack.
Let’s look at this in greater detail.

At the lowest level are the computer chips that are dominated by Nvidia. Other chipmakers are playing catch-up, and there are arguments to be made that there is a lot of money to be made here still, even though Nvidia dominates. The prices are astronomical for the chips, and sometimes the next players can make even more money by producing a product at a lower price with healthy margins.

The second level is the cloud level, and the massive technology companies dominate this space. These are companies you have heard of before, like Amazon, Google, Microsoft. They provide the cloud servers used by the layers above.

The next level are the data. The companies that have the data that we want to use have a path to profitability. Think about who these companies are, and you might understand how they are interested in AI. Like we talked about earlier, the healthcare industry is full of data that cannot be shared. And an average consumer has data in a number of these databases, but needs access to all of them to maintain health. What an opportunity! Other industries are similar.

The fourth level is the database level. Here are the fundamental models, a phrase you may hear people talking about. They are the huge, large language models. We can all access some of them for free, like discussed earlier in this article. Also here are the smaller, proprietary models. Ashim mentioned a model that you can access if you pay for Open AI, called Sora. Type in test, like 1920’s New York City, and the artificial intelligence makes a movie–just like that!

Beyond this level are the software, like ChatGPT, just beginning.The development of the applications that we use, is changing. The interface we use is changing. One of our guests mentioned typing into Facebook a message, and Facebook rewrote it for him, only better. He loved it! Another person mentioned asking AI to write an apology letter, and his wife edited it and used it. Although they are small examples, quickly our imaginations can see how our lives can be improved.

The final level is the end user level. Recently, Apple created goggles that we can wear around and always be using a computer screen. Quickly, a person can imagine those goggles turning into a normal pair of glasses, we can all feel comfortable wearing. Imagine that the glasses enable you to help you with every task you have, any time you want the help.

Artificial Intelligence Summary

In Ashim’s presentation, he goes through what is happening with AI today and what they are doing. And he describes where it is going, what stages of development we are in, and gives us a practical perspective on a topic which generates a lot of passion, fear and confusion.

At any time, give us a call at A&I to discuss this and other investment themes.

Investing in securities involves a risk of loss that you should be prepared to bear, including loss of your original principal. You should be aware that past performance of any security is not necessarily indicative of future results. Therefore, you should not assume that future performance of any specific investment or investment strategy will be profitable.

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    About the author

    Karl Frank, Certified Financial Planner ®, MSF, MBA, MA, is the President of A&I Financial Services LLC, a local business that specializes in wealth management, insurance planning, and retirement planning. Karl cares for business owners and the businesses that care for them. Learn More about Karl.