More innovation in robotics and artificial intelligence could bloom out of healthy competition, which could power the First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) even further.
The disruptive space, highlighted by robots and AI, is a prime alternative for investors looking for growth opportunities. Competitions in other parts of the globe could also help spur more innovation as firms look to compete to see which technology reigns superior.
“Strategies for driving innovation, whether on the corporate or the sovereign-state level, is wrought with challenges,” an IEEE Spectrum article says. “Abu Dhabi-based ASPIRE has adopted a creative approach to overcoming many of these challenges by creating grand technical challenge competitions to drive the development of innovative technologies. These challenges are essentially opening up to competition the development of solutions to key industrial and societal problems and offering prize money to the winners.”
“We picked this challenge because it’s a challenge that affects any country that’s got a coastline,” said Dr. Arthur Morrish, the chief executive officer of ASPIRE. “Both robots and AI are really good at doing the dull, the dirty, and the dangerous. And the maritime environment actually lends itself really well to those kinds of applications.”
As for the fund, ROBT follows the Nasdaq CTA Artificial Intelligence and Robotics Index. ROBT, in particular, provides exposure to target companies engaged in the artificial intelligence and robotics segments of the technology, industrial, and other economic sectors.
Components are classified as AI or robotics engagers, enablers, or enhancers, as determined by the Consumer Technology Association (CTA). The CTA is a standards and trade organization that includes over 2,500 companies from all parts of the globe.
Specifically, enablers refers to companies that develop the building block components for robotics or AI, such as advanced machinery, autonomous systems/self-driving vehicles, semiconductors, and databases used for machine learning. Engagers are comprised of companies that design, create, integrate, or deliver robotics and/or AI in the form of products, software, or systems.
Lastly, enhancers cover a group of companies that provide their own value-added services that are within the AI and robotics ecosystem, but which are not core to their product or service offerings. In essence, the group focuses on ancillary services to the robotics industry.
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