An Optimus bot from Tesla on display during the 2024 World AI Conference & High-Level Meeting on Global AI Governance at the Shanghai World Expo Exhibition and Convention Center on July 7, 2024.
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Cathie Wood, Ark Invest founder and CEO, highlighted the potential of AI to significantly accelerate the development and deployment of humanoid robots during the Future Investment Initiative (FII) in Riyadh, Saudi Arabia this week.
Wood sees significant opportunities in machines that mimic human size, shape, and movement and stated that this field might emerge as one of AI’s most promising frontiers.
“I know a lot of people are worried about all [the] ‘AI hype,'” Wood said. “But as we’re looking to the future, especially with embodied AI, which is all about robotaxis and transforming the world of transportation completely — and then healthcare, which is probably one of the most profound applications of AI, we think that this investment will pay off.”
She added: “I think the chaser is going to be humanoid robots. And I think that is going to be the biggest of all the embodied AI opportunities.”
The vision of AI-powered humanoid robots has long captivated the public and driven companies to invest heavily in creating machines that could revolutionize industries ranging from healthcare and personal assistance to logistics and retail. While initial projections about autonomous vehicles have faced headwinds, the core AI technologies developed along the way are finding new applications in robotics, potentially shifting the timeline for broad adoption.
Investors have generally viewed this emerging technology with a healthy dose of skepticism, questioning the viability of achieving economically justifiable performance in real-world applications. Key challenges include the high cost of development and production, the complexities of programming these robots to handle unpredictable environments, and ethical considerations surrounding their use.
Tesla CEO Elon Musk has been a vocal proponent of humanoid robotics. He stated last month that Tesla’s Optimus robots could eventually account for approximately 80% of the electric vehicle manufacturer’s market value. This bold prediction rests on the idea that Optimus can address labor shortages and significantly reduce operational costs across a wide range of industries. Musk has even envisioned Optimus taking on tasks ranging from factory work to elder care.
Wood’s ARK Artificial Intelligence & Robotics UCITS ETF’s top holdings are Tesla (9.16%), Palantir (7.02%) and AMD (6.14%).
Productivity gains
“What I do think is, on the enterprise side, it is going to take a while for large corporations to prepare themselves to transform it’s going to take a company like Palantir going into the largest enterprises and really restructuring them in order to really capitalize on the productivity gains that we think are going to be unleashed by AI,” Wood said.
“In the consumer space, the consumer loves all of this, you know, and I think we’re all looking forward to our personal assistants doing our shopping for us,” she continued. “I am really excited about not just shopping, but how much my productivity as an individual is going to increase with AI. It already has in terms of research.”
Wood, who also warned about the short-term potential for an AI-related “reality check,” said elevated Big Tech valuations will make sense over a five-year time horizon. This longer-term perspective aligns with the view that AI’s true transformative power will unfold gradually, driven by advancements in hardware, software, and infrastructure. The convergence of AI, robotics, and advanced materials is expected to unlock new capabilities and create significant value in the coming years, solidifying the long-term investment thesis for companies positioned at the forefront of this technological revolution.
