ARK leader shares predictions on disruptive tech
The growth of bitcoin and the increased adoption of artificial intelligence are among the most disruptive innovations Cathie Wood of ARK Invest says technologists and investors should be watching.
On Feb. 1 St. Petersburg-based ARK Invest released its seventh edition of the annual Big Ideas 2023 report, which predicts what technologies will experience tremendous growth, revolutionizing how business is conducted throughout multiple sectors.
According to the findings in the 153-page report, the market value of disruptive innovation platforms could scale by 40% at an annual rate from $13 trillion today to $200 trillion by 2030.
There are five converging innovation platforms that will define this technological era, according to ARK:
The full report can be accessed here.
- Public blockchains: The traditional financial ecosystem is likely to reconfigure to accommodate cryptocurrency and smart, digital contracts as these technologies increase transparency and reduce the influence of regulatory controls. As a result, digital wallets will become more necessary. ARK predicts the price of one bitcoin could exceed $1 million in the next decade. As the value of tokenized financial assets grows on the blockchain, decentralized applications and the smart contract networks that power them could generate $450 billion in annual revenue and reach $5.3 trillion in market value by 2030.
- Artificial intelligence: AI automates workflows and data, integrating into every economic sector. “The adoption of the neural networks [a machine-learning process] should prove more momentous than the introduction of the internet,” ARK wrote in its report. At full adoption in the workplace, AI could increase global labor productivity to $200 trillion, dwarfing the $32 trillion in total knowledge worker salaries.
- Energy storage: The declining costs of advanced battery technology should drive the micro-mobility and aerial systems, including flying taxis, enabling business models that transform the landscape of cities. “These innovations combined with large-scale stationary batteries should cause a transformation in energy, substituting electricity for liquid fuel and pushing generation infrastructure towards the edge of the network,” ARK wrote in its report. ARK reports that electric vehicle unit sales will scale at 50% during the next five years, from roughly 7.8 units million in 2022 to 60 million units in 2027.
- Robotics: “Robotics could collapse the cost of distance with hypersonic travel, the cost of manufacturing complexity with 3D printers and the cost of production with AI-guided robots,” according to ARK, which predicts that manufacturing robots and 3D printing could scale at an 80% annual rate from $70 billion in 2022 to $9 trillion by 2030. Regarding manufacturing robots, ARK reported e-commerce giant Amazon is producing 1,000 robots per day, meaning it could add more robots than employees over the next few years.
- Sequencing: Sequencing technologies provide research scientists and health platforms with unprecedented access to DNA, RNA, protein and digital health data. Through this, cancer care should transform. The data should feed into precision therapies, which focus on the root of a disease, by using gene editing that can modify, insert or delete genes from an induvial. The gene editing technique is used to target and cure rare diseases and conditions. “We believe next-generation diagnostics and therapeutics will work together to lower cancer mortality,” ARK wrote in its report. ARK predicts the enterprise value of companies focused on precision therapies could appreciate 29% at an annual rate from $500 billion in 2022 to $3 trillion by 2030.
February 6, 2023at9:51 am