Tom Gardner

So we've seen this before and in that way, it's not different.

I think what's unique about AI is that it's a system, it'll be a worldwide system and people with superior AI talent will be able to create new systems that will have downstream impacts that we can't foresee right now.

So is it different?

Yes, it does have elements that are different, but even artificial intelligence as with every other innovation in history can become overvalued, right?

I think AI is going to create things we never thought possible.

Illnesses and disease solved.

So many complex things that we haven't been able to figure out in human history, we will actually be able to figure out with AI.

But there will also be so much competition.

A lot of it will be commoditized and businesses that get very richly priced may find themselves threatened by small upstarts that nobody's ever heard of in three years because they jumped in purely with the new technology and built everything clean slate.

So the competitive dynamics are different.

And therefore, I don't think the valuations should run as high as they have at this point.

Across our Motley Fool member base, obviously, we have executives running companies in public markets and the private markets.

We have people employed in businesses in every industry around the world.

And what I would say as organizations looking at the use of AI, you know, there's an MIT study that came out recently saying that 95% of all organizations that have utilized AI have not seen any profit from it at this point.

so that could be discouraging and i think it's good to be thoughtful about the projects that people are going to be creating using ai no question right we still be prioritizing still be disciplined and the companies that we invest in we should see that they have a game plan and that they're moving forward however at the same time were you really smart in measuring the profitability of early applications on the internet in 1995. i mean in a way

Yes, you want to know they were at least going to break even, right?

But in another way, this is a major investment mode.

People should be experimenting and exploring and trying to figure out what these new technologies can bring forward in their category.

I think every single industry is going to show in the public market some companies that are 10 and 20 baggers, and I think many of them will simply be

recorded as the leader in AI in their category.