When will investors tire of AI? When will they stop buying into the AI hype? Do they have an expectation as to when AI is supposed to accelerate Revenue and EPS growth? (Note: this is a premium article for $99.99 and includes 6 short ideas and 1 long idea related to the AI theme).

As we have written before, there are several gating factors to AI / Advanced Automation including:

1. Qualified People: The number of qualified people – experienced statisticians and data scientists – who are critical for designing, deploying and maintaining AI/ML/LL/NLP models (approximately 80% of all AI-related models never make it into production), is limited.
2. Data Readiness: Defining the business problem that AI is expected to solve, identifying and preparing the relevant data sets used for training AI models and maintaining those models is a complex, time-consuming undertaking that many companies are not prepared for.
3. Proliferating Expense: The cost associated with building AI / Advanced Automation processes is significant and grows as the associated data sets grow in size and scope, thus requiring a greater effort to manage AI-related operations.

There are a number of companies that have seen their Equity value benefit from the AI hype. We believe these equity benefits will be temporary and that the stocks are Shorts. Here are a few of those names:

• Asset Management
• Investing
• Software
• Technology