Allianz Investment: Investors should pay attention to companies driving the artificial intelligence revolution.

In the past 3 to 5 years, the application of Internet of Things has been increasing day by day, whether it is very common household devices (such as internet-connected doorbells) or in the industrial and manufacturing sectors. The prospect of artificial intelligence is driving the development of innovative solutions, and more and more companies are adopting related technologies. Investors should pay attention to companies driving the artificial intelligence revolution, including hardware and component manufacturers, software suppliers, and companies leading in industrial automation, with Europe being particularly worth noting. Of course, there will be winners and losers between companies that can quickly apply new artificial intelligence capabilities and those that lag behind in traditional manufacturing industries. In factories, Allianz noticed that many of the fastest-growing areas come from the category of optimization and improvement, such as introducing artificial intelligence into existing systems to make existing processes and systems more efficient and cost-effective. For example, companies have equipped sensors in factories and the necessary data flow, so they can install artificial intelligence to provide another level of analysis, which is expected to significantly improve efficiency and productivity. Allianz Investment mentioned that in quality control processes, the benefits of this level of analysis can already be seen. For example, in manufacturing systems such as cars, regularly stopping the production line to inspect the quality of each product is not only costly but often impractical. Artificial intelligence tools can now make more inspections instantly, reduce downtime, and increase efficiency. Furthermore, tasks that previously required a large number of skilled workers can now be automated. Artificial intelligence is improving agricultural efficiency and promoting sustainability. For example, the use of artificial intelligence and deep learning technologies in crop spraying systems using tractors and drones has been widely adopted, selectively using herbicides to reduce usage by up to 80%.