Software Spend Could Grow at a 42% Compound Annual Rate, Research Shows
Summary
“We expect the value of a knowledge worker empowered with AI to increase ~15% at an annual rate, compared to the 2.7% consensus expectation for annualized wage growth through 2030.” Anticipating more than a doubling in productivity, companies are likely to purchase AI software at a 75% discount to boost worker productivity, Summerlin wrote. “In other words, for every $1 gain in productivity, they probably will be willing to dedicate $0.25 to software licensing.” ARK Invest, however, does not believe AI will lower the overall demand for human labor. Investors looking to capitalize on AI’s emerging opportunities should consider the ARK Innovation ETF (ARKK). ARK defines ‘‘disruptive innovation’’ as introducing a technologically enabled new product or service that potentially changes the way the world works. This includes companies that rely on or benefit from the development of new products or services, technological improvements, and advancements in scientific research relating to the areas of DNA technologies and the “genomic revolution,” automation, robotics, energy storage, artificial intelligence, the “next-generation internet,” and fintech innovation.