The firms that will deliver these kinds of advances are well represented in our Disruptive Technologies fund by stocks such as Proto Labs, which uses advanced technology including 3D printing to manufacture prototype and on-demand parts for customers around the world. Japan’s Fanuc is the world leader in industrial robots, while US-based Cognex Corporation specialises in machine-vision systems (the sensors and software that guide assembly line robots).
However, disruptive technologies aren’t just concerned with building better machines. Finding ways for humans to work together with technology will be at the centre of this revolution. Hence advances in robotics also include “service robots”, which could replace customer-service staff in hospitality and retail. This should cut costs, improve efficiency – and even deal with the likely shortage of service staff caused by ageing populations in many wealthy nations.
Harnessing the full potential of the fourth industrial revolution will depend on the fast-growing field of artificial intelligence (AI), cognitive computing and machine learning, where spending is expected to exceed $79bn by 20226. These fields involve developing computer systems that are capable of doing the same kind of “thinking” tasks that can currently only be performed by humans – often highly skilled and trained humans – as well as giving them the ability to recognise speech and images in a way that allows us to interact naturally with them.
same kind of “thinking” tasks that can currently only be performed by humans – often highly skilled and trained humans – as well as giving them the ability to recognise speech and images in a way that allows us to interact naturally with them.
6IDC, March 2019, Worldwide Semiannual Cognitive Artificial Intelligence Systems Spending Guide
*https://venturebeat.com/2017/05/17/googles-speech-recognition-technology-now-has-a-4-9-word-error-rate/
The potential applications of AI are vast. In the future, if you are concerned about your health, your first stop may not be your doctor – it’s more likely to be an AI healthcare assistant that can assess your symptoms and your vital signs (taking into account data passed to it via IoT-connected devices such as fitness trackers, for example).
Cutting-edge AI is still at a relatively early stage of development, so many of the firms in this field are private. However, investors can still gain exposure to the sector through companies like Nvidia, which designs the chips used in high-performance data centres that power many AI applications. Meanwhile technology giant Microsoft has focused on cloud computing in recent years, meaning it will be exposed to the growth of AI and anything else that requires the processing of vast amounts of data, such as the Internet of Things.
**Gartner, November 2019, Public Cloud Services, Worldwide, 2017-2023, Q19 Update
