Google doesn’t want you only associating them with “Googling” something anymore.
They’re onto bigger and better things, and you should be taking heed; because when not just Google, but all the game-changing technology players are changing tact, it means a major shift is afoot. And as all investors know, when it comes to new developments, it pays to be ahead of the curve.
Google’s first foray into artificial intelligence (AI) in the consumer space was in mid-2016, with the Google Assistant. Alongside Apple’s Siri tool, and Amazon’s Echo home device, these became some of the earliest solely AI products people came into contact with. These home assistant devices have been very successful, but the companies that produce them view this application of AI as being simplistic, and only the very tip of the iceberg in terms of what AI is capable of. They’re ready to change the world yet again, and artificial intelligence is the tool that is going to allow them to do it.
Artificial intelligence is poised to revolutionise almost every industry the world over, but one where its influence might be most acutely felt is healthcare. Deloitte estimates that global healthcare spending will top US$8.7 trillion by 2020, with the average American spending $11,356 per year. While it perhaps doesn’t make for pleasant reading, the statistics regarding demographics and the future of the industry are damning. The number of people aged over 65 has grown to 656 million worldwide, or 11.5% of the total population, as the improvements in medical care have increased life expectancies. While the rates of infant mortality and communicable diseases are decreasing, other conditions requiring care are skyrocketing. Obesity, diabetes, cardiovascular and respiratory diseases are all now major contributors to healthcare spending, particularly in developed economies.
It is this seemingly exponential growth in the size of the industry that prompted the likes of Amazon, Apple, Google and Uber to all announce their interest in disrupting the healthcare market. Amazon has partnered with JPMorgan Chase and Berkshire Hathaway to create a better technology platform for administering health; Apple is opening its own clinics as a trial, with a view to driving down costs by helping clients stay healthy using AI and technology, rather than just providing care to the sickly; and Uber is competing in the medical transportation market by providing non-emergency vehicles at a cheaper price.
However, it is Google (or Alphabet) that has shown the most ambition in the space, and who are working on a number of healthcare projects simultaneously. On the medical care front, this includes the diagnosis and management of conditions like diabetes, Parkinson’s, heart disease, multiple sclerosis, as well as several other serious ailments. Google is also rebuilding the data infrastructure for large healthcare companies, providing not just assistance for doctors but diagnostic tools for patients too. This process will include syncing and digesting the data produced by wearable technology with the data produced from regular medical scans and check-ups, to produce AI driven detection and diagnosis.
So, what is the play for retail investors seeking an early mover advantage, and looking to gain exposure to the AI and robotics industry before it really takes off?
OzFinancial Australia hosted a webcast presentation on June 20 presenting on how investors could gain global exposure to AI and robotics companies. Click here to view the webcast.
