ARK Invest’s Cathie Wood says today’s artificial intelligence surge is fundamentally different from the speculative excess that defined the dot-com mania.
In a new ARK Invest webinar, the star fund manager highlights that the technology underpinning AI is far more advanced and ready for widespread adoption across industries.
“And this, in comparison to what was going on in the tech and telecom bubble, is night and day… Back then, the technologies were not ready. The costs were way too high. We did not get the cloud until 2006. We did not get the first real breakthrough in AI until 2012, with deep learning, and then the even bigger breakthrough in 2017, which was the transformer architecture. And of course, we had the ChatGPT moment in late 2022. We think this AI story has just begun.”
She says that, unlike the early 2000s, companies are now moving quickly to avoid falling behind as AI reshapes competition.
“If Palantir is any indication, and we think it is, you have CEOs and strategic decision makers saying, We have got to do this or we are going to lose our competitive edge out there.”
Wood highlights that real-world use is already showing up in business results and on the consumer side.
“And that is why US commercial business was up 123% last quarter, far surpassing anyone’s expectations, including our own. There is a strategic imperative now, and it will take time.”
She believes productivity improvements are beginning to take hold and could soon register in broader economic data.
“Individuals are seeing big increases in productivity with these tools. That will percolate into some of the productivity measures. But we think the real productivity gains, the needle moving, it will start within the next year.”
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