Can small investors still profit from the benefits of ChatGPT? This is a question that many are asking given the fast-paced advances of the industry. At the current rate, generative AI is forecasted to become the biggest technology market of the decade. With the leading AI providers pouring millions into startups and new technologies, smaller investors may be wondering if they will find any success when entering the market.
The good news is that there are many options out there for investors to choose from. Professor Andy Pardoh, director of the Warwick Innovation District’s Deep Tech Innovation Center and founder of AI platform Wisdom Works, recommends that investors create a portfolio of businesses to invest in, in order to hedge their risks. Pitchbook, which tracks tech deals, reported that $1.7 billion was invested in generative AI in the first quarter of this year alone, so the opportunities are definitely there.
Given the constantly changing and unpredictable market, it is key for investors to make informed decisions. Lonergan suggests that investors take advantage of online fundraising groups, such as angel investment groups and Crowdcube, as well as the Seed Corporate Investment Scheme and Corporate Investment Scheme, which provide generous tax relief for eligible projects.
At the same time, it is important for investors to remember the risks involved when entering the industry. Profits are not always guaranteed and there are many factors to be taken into consideration. Small businesses may find success, but it is always important to take care and do thorough research prior to investing. It is also advisable to consult a lawyer regarding the National Security and Investments Act; businesses operating in this sector could find themselves “blocked” or given conditions for their investments.
In the end, the momentum generative AI has been receiving over the past few months makes it an attractive prospect for many investors. As long as risks and benefits are weighed carefully and investments are made with due diligence, small investors can still profit from the opportunities available in the field.
