The Big Data and AI industry is more than a trend; it’s here to stay, steadily growing in its impact, relevance, and predictive capabilities. Furthermore, the methods to capture and utilize this data are advancing, solidifying its comparison to 'digital oil'. Not only is processing power consistently increasing exponentially, but data storage costs are simultaneously shrinking- driving customer expectations and competitive dynamics.
As AI progresses and transforms various sectors, the reasons stakeholders invest money into these technologies shift. Broadly, their investments target two main objectives: offensive(proactive) and defensive(reactive) spending. Proactive investments focus on innovation, transformation, and securing a competitive advantage, whereas reactive spending aims at cutting operational costs and ensuring regulatory compliance. Recent trends over the last four years indicate a tilt towards defensive initiatives, suggesting a potential maturation of an industry that was only recently brought into the spotlight.
The BlueStar® Big Data & AI Index (BDAI) tracks pure-play machine learning, artificial intelligence, database management, and other data-related companies. The index is up 48.69% year-to-date (data as of 10/24/23) and 175.7% since inception on July 4, 2017.
BlueStar® Big Data & AI Index
Source: MarketVector. Data as of October 30, 2023.
This topic is explored in some more detail in a whitepaper published in our MVIS Insights here.
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About the Author:
Jesse Nacht is the Index Research Associate at MarketVector IndexesTM (“MarketVector”). His core responsibilities include assisting in index development and design. Having come from a trading background, Jesse holds a Series 57 Securities Trader License. He has a Master of Arts in International Economics and Finance from the International Business School at Brandeis University. Prior to this, he also received a Bachelor of Arts in Economics from the same university.
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