Capital IdeasTM
Investment insights from Capital Group
Artificial Intelligence
Julien Gaertner
Drew Macklis
Mihir Mehta
Too busy to plan your next business trip? Imagine this scenario: You set a date and destination in your digital calendar and then a bot powered by artificial intelligence (AI) does the rest. It searches for the cheapest flight that complies with your employer's work travel policies, picks your preferred aisle or window seat, pays for the ticket, and adds it to your calendar.
Science fiction? This reality may not be too far in the future.
Given the vast potential of AI, it's no surprise the market has sought to sniff out early winners and losers. Many technology stocks have soared since ChatGPT captured the public's imagination earlier this year.
We believe this is the start of the next megacycle for the technology sector.
The chart below shows that the global AI market is projected to reach nearly US$2 trillion by 2030.
Data as at January 2023. Years 2023 through 2030 are estimated. Lighter blue boxes represent estimates. CAGR = compound annualized growth rate. Sources: Next Move Strategy Consulting, Statista
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