How to start an investment conversation?

Weekly Investment Conversation Starters No. 106

Thanks for reading this newsletter, this week we talk about Artificial Intelligence, with the annual AI Index Report, and the use of AI in oncology and robotics.

Three ideas to start a thematic investment conversation

1. AI now beats humans at basic tasks ????

Stanford University's annual AI index shows AI's rapid growth and its ability to surpass human performance in basic tasks.

2. New AI tool could detect source of cancerous tumours ????

Tianjin Medical University scientists created an AI tool superior to pathologists in identifying cancer origins, aiding late-stage treatment.

3. Football-AI is coming home... ???

AI-powered robots trained by DeepMind, via a machine learning algorithm, play football like Messi and Mbappé.

1?? AI now beats humans at basic tasks

Warm-up the conversation:

Did you know that Google is dominating the AI model race with 18 models released in 2023?

(Source: Stanford University)

Seen in IEEE Spectrum this week:

• Stanford University releases its annual artificial intelligence index report.
• It charts the meteoric rise of artificial-intelligence tools and finds AI systems now match or exceed human performance on a number of basic tasks.

Why should you know?

1. AI is now competing with human abilities in fields like reading, image identification and math.
2. AI's rapid advancements are outpacing current benchmarks and new evaluation measures are needed.
3. Amid AI's advancements, ethical use and regulatory oversight increase.

Where is AI doing the hard work now?

• The AI sector is booming, with a spike in coding projects and publications.
• AI's application in science is also growing, with emphasis on material discovery and weather forecasting.
• AI makes workers more productive and leads to higher quality work, helping bridge skill gaps.

Share an investment thought:

???? UBS CIO Long-term Investment Theme: Enabling Technology

Enabling technologies like AI, AR/VR, 5G, cloud and big data are the engine of the digital transformation and spending on their development should remain high.

2?? New AI tool could detect source of cancer

Warm-up the conversation:

Did you know that the oldest reference to cancer was found in an Egyptian textbook on trauma surgery dating back to 3'000 BC?

(Source: American Cancer Society)

Seen in Nature this week:

• Scientists from Tianjin Medical University in China have developed an AI tool that identifies metastatic cancer cells' origins.
• It is more accurate than pathologists. This could enhance late-stage cancer diagnosis and treatment.

Why should you know?

1. This is a significant advance in cancer care, with the possibility to use this AI in clinical settings for better treatment outcomes.
2. For patients with cancers of unknown origins, it could improve chances of accurate diagnosis and use of more targeted therapies.
3. It represents hope for a better quality of life, with potentially extending patient survival rates.

How does it work:

• The AI model was trained on 30,000 images and had an 83% accuracy rate.
• It can predict the primary tumour's location based on metastatic cell images.
• It produces predictions that help narrow down the cancer source and avoid extra intrusive tests.

Share an investment thought:

???? UBS CIO Long-term Investment Theme: Oncology

As life expectancy rises, new cancer patients will outpace population growth. Advances in cancer detection and therapeutics will create new opportunities.

3?? Football-AI is coming home

Warm-up the conversation:

Did you know that playing sports against robotic opponents makes our brains work harder?

(Source: University of Florida)

Seen in Popular Science this week:

• These two tiny AI-powered robots were trained on the rules of the "beautiful game" via a machine learning algorithm developed by Google's DeepMind.
• They can now dribble, defend and score goals, like Messi and MBappé.

Why should you know?

1. DeepMind, that excels in strategic games like chess, is now bringing AI to physical activities.
2. It shows potential of deep reinforcement learning in robotics, beyond games.
3. It could lead to more adaptable and skilled humanoid robots.

How does it work?

• These robots can walk, turn, kick and recover from falls faster than programmed robots.
• They even developed new behaviors, like spinning and pivoting, that hard to script in advance.
• Future plans involve combining virtual and real-world training to enhance the capabilities further.

Share an investment thought:

???? UBS CIO Long-term Investment Theme: Automation and Robotics

Robots and automation are driving the fourth industrial revolution and are transforming the future.

About Investment Conversation Starters

Hand-picked for relationship managers and investment advisors,?Weekly Investment Conversation Starters?is a series of ideas to start a conversation with clients, spark their curiosity and gauge their appetite for thematic investments.

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