BY CHAD WARRICK CO-CEO
Growing up, I always loved watching George Jetson glide out of his house on his automated pathway, effortlessly whisked off to his workday. Back then, it felt like pure science fiction: a world where robots did the chores, flying cars filled the sky, and technology made life easy.
Here we are now, going through what some are calling the Fourth Industrial Revolution, with artificial intelligence (AI) rapidly transforming the way we live, work, and interact with the world around us. AI is no longer just a futuristic concept; it’s here, embedded in everything from our smartphones to our financial markets, shaping the next era of human progress.
A bit of history
The idea of machines thinking like humans was first introduced in 1950 by British mathematician and computer scientist Alan Turing, who is widely regarded as the father of modern computing. By 1956, AI had been officially recognized as a field of study at the Dartmouth Conference although it would take decades for technology to catch up with the ambition. Breakthroughs in machine learning and neural networks in the late 20th and early 21rst centuries changed everything, propelling AI from a theoretical concept into a real-world force that touches nearly every industry.
The Personal TOUCH
Today, AI has quietly woven itself into our everyday lives. With integrations into email providers, it can be used to manage inboxes and calendars. Financial institutions use AI-powered fraud detection to monitor transactions in real time, often before the activity is noticed by account holders. Streaming services also use AI to analyze our viewing preferences and suggest the perfect show or movie to watch next. Even our homes are getting smarter, with AI adjusting lighting, temperature, and security based on our habits.
Apple recently took it a step further, embedding Apple Intelligence into its operating system. With smarter writing tools, personalized emojis, and an upgrade to Siri, AI is no longer just about automation – it’s about making life more intuitive and efficient.
tHE market gets excited
Beyond personal convenience, AI is making waves in the financial world, with the biggest players in the market going all in. The largest AI-focused firms are projected to invest over $1 trillion between 2024 and 2027, reinforcing the role of AI as a long-term growth driver. Within our firm’s portfolio construction, we are capturing these tailwinds through our allocation to Core Large-Cap Growth funds, which have direct exposure to the Magnificent 7, each playing a crucial role in shaping the future of AI. While this AI-driven momentum has fueled a strong market performance, it has also pushed valuations above the historical average of the S&P 500 PE ratio, reflecting heightened investor enthusiasm and the need for disciplined risk management. Earlier this year, the release of DeepSeek – an advanced AI model out of China – sent shockwaves through the tech sector, triggering a massive drop in Nvidia’s stock price. This sudden reaction underscored just how sensitive the market has become to AI advancements.
As the landscape continues to evolve, the growth opportunities are undeniable, but they will certainly come with volatility. We are closely monitoring these developments, knowing that AI is now a major driver of market movement, capable of fueling rapid gains but also sharp corrections as new innovations disrupt the competitive landscape.
What’s next
Where all of this leads is still uncertain, but one thing is clear: We are well on our way to a future that might start strongly resembling the one we saw in “The Jetsons.” AI is already transforming the way we work and live, so who knows? One day, we may all have a Rosie scootering around the house, vacuuming and dusting furniture. Whether we embrace it with enthusiasm or skepticism, one thing is certain – we’re all watching, curious to see where AI will take us next.
