From Hype to Reality: The Impact of Generative AI

Artificial intelligence (AI) has taken the world by storm, capturing our curiosity and driving massive investment in technology infrastructure. With the democratization of AI capabilities, the possibilities are endless. However there are also challenges and limitations, including the need for responsible use, data security, privacy, and regulatory frameworks. Which industries could be transformed by this groundbreaking technology? Will regulatory frameworks be able to keep pace with these rapid advancements? And how could AI continue to evolve? On this episode of Disruptive Forces, Anu Rajakumar speaks with Daniel Flax and Jamie Zakalik, Research Analysts with Neuberger’s Equity Research team, about the explosion of AI into our collective consciousness and its enormous potential to shape the future of society.

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Artificial Intelligence Risk. Companies involved in, or exposed to, artificial intelligence-related businesses may have limited product lines, markets, financial resources or personnel. These companies face intense competition and potentially rapid product obsolescence, and many depend significantly on retaining and growing the consumer base of their respective products and services. Many of these companies are also reliant on the end-user demand of products and services in various industries that may in part utilize artificial intelligence. Further, many companies involved in, or exposed to, artificial intelligence-related businesses may be substantially exposed to the market and business risks of other industries or sectors, and an investor may be adversely affected by negative developments impacting those companies, industries or sectors. In addition, these companies are heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance that companies involved in artificial intelligence will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. Legal and regulatory changes, particularly related information privacy and data protection, may have an impact on a company’s products or services. Artificial intelligence companies typica...