How to invest in AI UK

The promise of artificial intelligence (AI) is enormous and, if the bulls are right, it will make companies that don’t embrace it at a disadvantage. Those that do will reap the rewards. However, investing in individual AI stocks can be risky as the technology is still evolving and it’s hard to predict how different businesses will use it or when.

While tech how to invest in AI UK like Microsoft, Alphabet and Amazon are already making progress in commercialising AI, there’s a growing ecosystem of smaller companies that are using it in innovative ways. These range from companies like Tome which focuses on delivering presentations that help sales and marketing teams to create better content, through to firms that are using AI to narrow down search results or to make brand chatbots smarter.

How to Invest in ETFs: A Guide for UK Investors

There are also a number of fund options for investors interested in this emerging sector including ETFs from WisdomTree and Legal & General. These offer a passive approach, tracking a custom index with top-ten holdings including advanced chip maker Nvidia and gene-sequencing specialist Illumina. There are also actively managed funds such as the Liontrust UK Growth fund managed by Anthony Cross and Julian Fosh, which takes a more selective approach to its investment portfolio with a focus on companies that are leveraging AI to gain a competitive advantage.

While the potential for high returns is compelling, remember that this is a thematic growth investment and as such can be more volatile in the short term than a more diversified portfolio. As such, you should consider whether the theme is appropriate for your portfolio and only invest a portion of your investment capital in it.…