Artificial intelligence (AI) and robotics are anything but new, and investors have had access to related stocks and funds for years. But rapid developments in both technologies appear to have made the present a turning point for their respective sectors – and for the future prospects of robotics and AI ETFs.
Something changed irrevocably during generation artificial intelligence exploded onto the scene with Open AI’s ChatGPT.
The chatbot surpassed one million users just five days after its launch in late November 2022. It reached 100 million monthly active users in January 2023, a feat UBS said has made ChatGPT the fastest growing consumer app ever.
And OpenAI CEO Sam Altman said at the New York Times DealBook conference on December 4, 2024: ChatGPT surpassed 300 million weekly active users.
But it’s not just about ChatGPT: the entire AI industry is poised for meteoric growth. According to Grand View Research Estimatesthe AI industry is expected to grow from approximately $197 billion in 2023 to $1.8 trillion by 2030, representing a compound annual growth rate (CAGR) of 37%.
“Continuous research and innovation led by tech giants is driving the adoption of advanced technologies across industry verticals such as automotive, healthcare, retail, finance and manufacturing,” says Grand View.
Industrial robotics, while smaller in comparison, is still expected to grow from $30 billion to more than $60 billion in the same time frame, Grand View Research adds, a CAGR of around 11%.
There’s no doubt that many investors are increasingly considering pursuing this growth – but how you get there is important. You could consider individual AI Actionsbut if you make poorly focused bets, you could lose big even as artificial intelligence continues to take off.
And you could Consider researching the best ETFs to buy in the broader technology sector that have some exposure to AI, although you may reduce your exposure to the artificial intelligence and robotics sectors.
Your best bet then may be to invest in robotics and AI ETFs – and we’re going to introduce you to seven such funds today.
There is a lot of overlap between the worlds of artificial intelligence and robotics. But the best robotics and AI ETFs differ in the extent to which they focus on one, the other, or both.
Each ETF offers its own take on these explosive industries – so take note of their differences when determining which fund is your ideal way to invest in the sector.
We’ll start with AI-focused funds, move to blended robotics and AI ETFs, and end with robotics-specific ETFs.
Data is from December 3.