AI drives the next wave of new innovation
Kathy Wood especially believes in technology convergence artificial intelligencedespite current market uncertainty, it creates transformative investment opportunities in multiple sectors.
between Webinar UK investment platform Investengine hosted on Thursday ARK INVEST The CEO and Chief Investment Officer outlined how AI is accelerating innovation across healthcare, autonomous driving and software development, fundamentally changing expectations for economic growth over the next five years.
According to Wood, “Artificial intelligence is the biggest catalyst for change,” explains how AI affects all technologies and accelerates innovation across the sector.
The investment strategist highlighted how analysts at her company are organized around these technologies rather than traditional sectors, allowing them to identify opportunities across multiple industries.
AI is transforming key areas like autonomous driving that Wood believes in Tesla Inc. (TSLA) Robotaxis will reach a critical safety milestone this year.
“By the end of the year, we believe that thanks to AI, Robotaxis, or at least Tesla’s Robotaxi, is safer than human drivers,” Wood said, noting that Tesla is approaching the safety threshold for one accident per 700,000 miles currently being achieved by human drivers.
This safety improvement, coupled with the changes in regulations that timber forecasts under the current administration, could accelerate the adoption of autonomous driving technology and transform the transportation economy.
“The ultimate price at scale…If the fully global Robotaxi network is expanding, it’s 25 cents per mile, compared to $2-4 per mile, when Rideshare services are currently being charged,” Wood explained.
The transformational impact of AI on healthcare has been another focus, especially in drug discovery, which companies like. Recussion Therapeutics Inc. (RXRX) According to Wood, we have seen researchers’ productivity increase tenfold in just one year.
“The number of hypotheses researchers can test with regression treatments has gone from 20 years of age 20 to 200 per year,” she said, adding that the timeline for developing drugs could be reduced from 13 to 8 years, but could reduce costs from $2.4 billion to $600 million per medicinal use.
Beyond short-term market volatility, Wood maintains an optimistic outlook with the vision to accelerate economic growth driven by convergence technology.
“We expect (GDP) growth to more than double in the next five years based on technology convergence,” Wood predicted, citing the historical precedent of technological breakthroughs that lead to increased gradual capabilities of economic growth.