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A new benchmark for AI investment: Swift Ventures unveils system to separate talk from action

Dec 09, 2024 - venturebeat.com
Swift Ventures has launched a new artificial intelligence company index, designed to identify public companies genuinely investing in AI technology. The index uses large language models to analyze earnings transcripts, hiring data, and research contributions, revealing that while AI is frequently mentioned in earnings calls, only a few companies are making substantial investments. The index tracks around 90 companies based on AI research investment, talent density, and AI-derived revenue, showing a 37% annual growth over three years, outperforming major indices. Companies contributing to AI research demonstrate higher profitability, with an average gross profit of 55% compared to 25% for regular tech companies.

The index highlights a talent gap, with only about 200 public companies having more than 1% of their workforce in AI-specific roles. Swift Ventures plans to offer the index for free with quarterly updates and is considering launching an ETF in 2025. The index aims to provide a programmatic approach to AI investment, distinguishing genuine AI companies from those merely adopting AI terminology. It could become a benchmark for evaluating AI investments, influencing resource allocation and investor assessment of AI capabilities in public markets.

Key takeaways:

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  • Swift Ventures has launched a new AI company index to identify public companies genuinely investing in AI technology, using a systematic scoring system based on earnings transcripts, hiring data, and research contributions.
  • The index tracks approximately 90 companies and has shown 37% annual growth over the past three years, outperforming the Nasdaq and S&P, with a strong correlation between AI research investment and profitability.
  • There is a significant talent gap, with only about 200 public companies having more than 1% of their workforce in AI-specific roles, highlighting the importance of genuine AI talent and infrastructure investment.
  • Swift Ventures plans to offer the index for free with quarterly updates and is considering launching an ETF in early 2025, aiming to provide a programmatic approach to AI investment rather than individual stock picking.
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