Time to pick your A.I. superheroes

Imagine the ability to look at something and know almost everything about it. It would kind of be like a superpower.

Alphabet (GOOGL) and Microsoft (MSFT) have tools to do it – right now. They are tinkering with artificial intelligence, racks of cloud computing power and ordinary cameras found in every smartphone. And they are anxious to give these tools to developers.

It’s going to lead to a new class of corporate superheroes, and the reinvention of business models.

We should not be surprised. This is the New Gilded Age.

Information technology is growing exponentially. It was just a matter of time before engineers figured out how to use AI to index the physical world.

At Google’s recent developer conference, CEO Sundar Pichai unveiled the smartphone app Google Lens. The camera software can easily identify people, places and objects. The sensors inside smartphones give those images context.

You just tap the Google Lens icon and point the camera lens at an object. Then the app connects to the full power of Google’s massive knowledge graph.

And the object appears on the phone’s screen along with options to get more information. For example, if you aimed at a restaurant, Google Lens can show you the eatery’s hours, menu and reviews.

The rise of artificial intelligence will radically alter the business world forever.

Microsoft is going one step further. Its Custom Vision Search software recognizes images in photographs and video. It adds metadata, uses facial recognition, can transcribe real-time video and even provide translation to supported languages.

CVS Health Corp. (CVS) has current partnerships with Samsung, Hewlett Packard and Intel. It’s also being pushed into the Microsoft SDK and API channels supported by 141 million software developers.

Now, imagine what they will build.

Maintenance workers in the field might gain instant access to repair manuals. The addition of augmented-reality visors would free their hands, boosting productivity and reducing training times. Retailers might enhance the in-store shopping experience by making information about pricing and availability just a snapshot away. The possibilities are endless.

The applications will come, soon. Both Microsoft and Alphabet are leading public cloud-computing vendors. All of the corporate world is headed to the public cloud or some combination of public cloud and corporate data center.

Gartner, an information technology research firm, argues cloud computing has the potential to be a $1 trillion sector.

Companies have already been migrating because it’s more modular, more secure and ultimately more cost-efficient.

The rapid ascent of AI will hasten the advance.

There is a growing consensus that if your company doesn’t have an AI strategy, it is going to be disrupted by one that does. IDC predicts spending for AI projects will rise to $47 billion by 2020. For reference, it was $8 billion in 2016. And Andrew Ng – the ex-Google, ex-Baidu AI guru – calls AI the new electricity.

It’s high praise. It’s also kind of reality. AI allows companies to take data and turn it into actionable intelligence. The way superheroes see nefarious behavior and leap into action.

Some people might think the only way to play the trend is Microsoft, Alphabet and Amazon (AMZN), the major public-cloud companies. That is simply not true. AI changes business models. The tumult will be felt in every sector.

I help my Pivotal Point Trader members find winners, and avoid losers.

And there are plenty of companies hiding in the most unlikely places, from banking to oil-well services. It really is the start of something new and important. A new breed of super stocks is being forged by New Gilded Age advances.

Best wishes,

Jon Markman

 

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Comments 5

  1. James June 7, 2017

    Are we in for a gold tranche? Possibly a return to the gold bullion standard? Are we in for a return to the gold bullion standard? Are we in for a return to the good old days of a big boom? Even possibly a bigger boom in 2007, could we see possibly the dollarization of the world economy. Possibly even a return to the good old days of a big boom. Whereabouts in this boom, bust cycle are we at.

    Kind Regards

    James C

    Reply

  2. James June 7, 2017

    Arebtheir virtual travel time savings to be made from building more motor ways. Whereabouts are we in the solow steady state level of income. Are we in another boom, recession, depression, recovery and growth? What’s the story there’s another big boom on the way.

    Kind Regards

    James C

    Reply

  3. Jeff June 7, 2017

    It seems an obvious arena for this high powered self learning AI would be turning it loose on the massive amount of stock market and economic data? It has to be happening. Who’s doing it? How will this change the complexion of a supposedly free market? All the data is based on all the irrational thinking (psychology of greed and fear) and insider data, so will AI just pick that up and amplify it…and make things more irrational? How will the little guy investor fair in that world? What would it do to the “technicals” side of the market analysis which is just a culture built into trader’s thinking. With just the hard data of businesses and economies wouldn’t technical analysis that drives trading go away? I’d love to hear Jon Markman’s views on how the market dynamics will change or will “the market” even exist? What will happen to personal privacy when an AI system decides to hack cloud storage so it can put all your personal data with your picture??

    Reply

  4. Michael June 8, 2017

    Hi! Thanks for the insights! How can we benefit from the trends and how to ride the new wave??? Of doing things???

    Reply

  5. Julie Porrello June 20, 2017

    Very good pitch but if we invest $10,000 as you suggest and pay $1497 for your service….
    we will not know for a while if the cost was worth it. Why not lower the price for the first six months so more folks would give it a try.

    Reply