It is no longer news that artificial intelligence (AI) is reshaping the business landscape. Let’s review a specific example beyond the typical as described by Capital Group’s Equity Portfolio Manager: Mark Casey.

“Artificial intelligence has captured the imaginations of investors in tech companies, but the use of AI will likely extend well beyond generative chatbots and have lasting impacts across many industries. As interesting as I find large language models like ChatGPT, I suspect AI-powered robots could have an even bigger economic impact over the next decade — with their applications used everywhere from homes to factories to hospitals.

For example, when Amazon started working on robots to select items and put them in shipping boxes, failure rates were high and successful picks took up to two minutes each. Seven years later, the company’s new “Sparrow” robot can pick and pack two-thirds of the 100 million products in a typical Amazon warehouse, needing just seconds for each. Delivery drones and driverless taxis are more visible examples of AI-enabled robots being tested in select cities across the globe. And in health care, companies are pairing AI with robotics to improve the success of surgeries and diagnostics.

Early stock market winners in the field of AI have been concentrated in the tech industry, particularly in sub-sectors like semiconductors, cloud infrastructure and software. Companies that benefit most from advances in robotics may be spread over a broader set of industries. I want to invest in companies at the forefront of using advanced robots to improve client experiences, efficiency and profitability.”

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