Britannica's encyclopedia defines AI, including LLMs, and mentions its application in various fields like healthcare, finance, and manufacturing. So what? From an investor's perspective, such definitions are empty shells. They don't tell us where the money will flow or which "backdoor" to exploit for real profits. Let's check the facts coldly.
The 'definition' of AI doesn't matter. What matters is the 'design'. Who designed AI, for what problem, and how, is the key to investment success. Britannica lists the history and types of AI but omits the "real" information about which companies are excelling in each type, their technical strengths and weaknesses, and the competitive landscape.
For example, AI-based diagnostics are advancing in healthcare. Britannica stops there, but we need to dig deeper. Which company has the most accurate diagnostic algorithm? What data was it trained on? How high are the regulatory barriers? What is the competitive landscape? What is the market entry strategy?
Similarly, AI-based fraud detection systems are effective in finance, but not all systems perform equally. Which system has the lowest false positive rate? What types of fraud does it detect best? How quickly can it adapt to new types of fraud? Simply knowing that 'AI is applied to finance' isn't enough to make an investment decision.
What about manufacturing? AI-based automation systems improve productivity, but not every factory can apply the same system. Companies that can design and build the optimal system for each factory's characteristics will be competitive. Britannica doesn't provide information on this 'custom design'.
Superficial information like this won't help you seize investment opportunities. To smell real money, you need to be involved from the 'design' stage of the technology. Which companies are 'designing' AI to solve new problems? How disruptive is that 'design' potential? Can it change the market landscape?
Looking at past technological trends, investing simply in the 'technology' itself is a risky strategy. For example, many internet companies emerged during the dot-com bubble, but only a few survived. The key is not the technology but the companies that solve 'real' problems and create 'real' value using the technology.
In conclusion, Britannica's AI encyclopedia is just a 'definition'. As an investor, you need to look beyond the 'definition' to the 'design'. Who is 'designing' AI to solve what problem and how? How disruptive is that 'design' potential? Can it change the market landscape? Otherwise, you'll just fall into traps others have dug. Remember that even the latest technologies like RAG can vary greatly in value depending on the 'design'.