Saxo Bank warns of capital outflow fromColin Baseman
The Danish investment bank Saxo Bank made provocative forecasts for 2020. The global economy could face the consequences of the Asian Infrastructure Investment Bank’s emissions of a new reserve asset, based on blockchain technology. In "Blockchain for business" article you may find out which areas can benefit from distributed register achievements the most
Other expectations of Saxo Bank
The Asian Infrastructure Investment Bank will issue the Asian Drawing Right (ADR). According to preliminary data, it will be equivalent to 2 US dollars.
According to Saxo Bank's expectations, OPEC states will be the first to use ADR settlements. As a result, the US dollar would be under attack. Its rate may fall by 20% compared to the new asset.
Analysts predict a decline in the interest in AI achievements. This will be a consequence of the lack of cost recovery for the creation and study of technology. The lack of cost recovery from the technology’s creation and study may bring about such consequences.
The balance of costs and revenues will be maintained exclusively by wealthy companies, including Google, Facebook and Microsoft. Venture capital will not channel funds into AI development.
According to Saxo Bank, these expectations are "unlikely, but they could have a strong impact on global markets. They should not be taken as official forecasts of the organization.”
What has been achieved by investing in AI
PwC said they have invested $1.9 billion in artificial intelligence during the first quarter of 2019. How does AI attract investors and what to consider when making decisions about investing money?
In 2018, a record was set for AI investments. Only the first quarter saw a 69% growth. Giants, including Apple, Amazon, Alphabet and others, are focusing on AI achievements. They buy promising startups or spend money on unusual developments in the field of artificial intelligence. For example, Intel has acquired Vertex AI, which develops in-depth training.
Prospects for the AI sector
The popularity of solutions using AI is linked to the rapid development of technology. The introduction of AI in various areas is nowadays cheaper and easier. Artificial intelligence has such advantages:
- Acceleration of hardware operation. Processors that make calculations are gradually becoming cheaper and their performance is improving.
- High speed of data generation. Virtual services and the development of the Internet of Things promote the digitization of a huge number of objects.
- Improvement of MO algorithms. There are many open software libraries of MO at the moment. They can be used by developers from all over the world. As a result, it is possible to create complex scripts much faster.
Artificial intelligence helps the company to form development plans accurately, taking into account the computer brain analysis. AI is used by marketers, advertisers and brand owners. Thanks to AI it is possible to analyze huge amounts of data, apply targeting, automate customer service and make forecasts. Artificial intelligence is actively used in e-commerce, medicine, energy and other areas.
How to start investing in AI startups
It is most profitable to invest in startups at the first stages of their development. This will maximize your profits. However, in this case, the risks are high as well. Therefore, investment should be carefully considered and planned.
Before spending a certain amount of money, you should study all ins and outs; get all available information about a startup company, its team and plans for future.
Practical tips for the investors
The experts advise to take into account the following aspects:
- Investment field.The best way is investing in a familiar field. In this case, it is easier to estimate the product value, relevance of the tasks it is going to solve and whether it is realistic as a whole.
- Deep analysis of the company and direction of its activities. Before you part with the money, you need to make sure that it is a worthwhile business. It is important to analyze the prospects of the business and form a list of key criteria.
- Assistance of an experienced lawyer. The specialist should be aware of the project financing details at the initial stages. Involving a lawyer will be the best way to protect your own rights.
- Gather as much information as possible. Never rely on data provided by the startup itself. It is better to get data from outside sources which are not related to the project. Before investing money, the investor should independently explore the market niche and evaluate the potential of the product or service offered.
When investing in artificial intelligence-related startups, one should better split the investment into several projects. This helps reducing risks in in case of business failure. Even investing in a company in a promising area does not guarantee there are no pitfalls. Therefore, the best amount for risking is the one not causing damages to your welfare in case of failure. Investments in startups are not always liquid, therefore keep in mind you may wait for several years till making some profits.
2019 was marked by several major investment projects in the field of artificial intelligence. Investors were somewhat disappointed with the low return on investment. That is why Saxo Bank makes a forecast that the filed may face an interest decrease in 2020. On the other hand, finding investors may force startups to offer particularly lucrative terms of cooperation. In case you have free money, consider investing it in artificial intelligence development. This is a promising direction, and it will remain relevant for a long time.
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