How AI Leadership Will Shape Economies And Markets In The Years Ahead

Aside from being the investment theme that has driven and accounted for the bulk of gains by U.S. stock indices over the past year, the development of Artificial Intelligence (AI) will almost certainly prove to represent the critical competitive advantage in technology in the decades ahead.

The accompanying chart illustrates the distribution of patents for Generative AI by major global companies. The chart provides sober reading for readers from the West, for it reveals that three of the top four companies holding AI patents are from China. In fact, the number of patents held by these companies is greater than the combined total of patents held by Western companies.

It must be said that the quality of a patent is far more important than the number, though it has been said that quantity is a quality in itself. The chart does reveal that the competition between the West and China includes the leadership of AI, which China has obviously taken very seriously.

The battle for AI leadership, and how AI will transform our lives in the years ahead, is but one of a host of economic and geopolitical catalysts for volatility that we expect to produce turbulent global capital markets in the months and years ahead.

The volatility ahead will produce significant risks, but also great opportunities for prepared investors. Markets in the years ahead will punish inattentive, passive investors and richly reward alert, active investors prepared to seize profit opportunities across markets and asset classes.

If you found this post of interest, you’ll find the Global Investment Letter of value. To view free sample issues of our paid service and to receive our free weekly investment comment (exclusive to those who signup) please visit: https://globalinvestmentletter.com/sample-issue/