WEBVTT

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Twenty-five years ago,

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IBM's Deep Blue defeated chess
grand champion Garry Kasparov

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and the world took notice of
artificial intelligence, or AI.

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Today, thanks to AI, computers
have learned to write poetry,

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smartphones find the
quickest route to the office,

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and driverless taxis transport
passengers in Arizona.

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In April 2003, scientists
announced the mapping

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of the entire human genome.

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Today, doctors are
beginning to use gene therapy

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to treat inherited
and acquired disorders

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and scientists designed the
COVID-19 vaccine two days

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after the virus's
genetic code went public.

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Disruptive, transformational
technologies like AI

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and the gene editing
breakthrough CRISPR,

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are entering a new era that
likely will impact our lives

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and drive innovation
for decades.

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Three key ingredients have
converged to propel us

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into a new era of Artificial
Intelligence - big data,

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faster computers, and
machine learning algorithms.

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Humans consumed an astonishing
amount of data last year,

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and researchers anticipate
data consumption is likely

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to increase more than
two-fold by 2025.

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And while only 65% of the
world's population has access

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to the internet, that
percentage increased 10%

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in just six months last year.

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These increases are
quickly pushing the bounds

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of computing power.

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Super computer processing
capacities have increased even

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faster than anticipated.

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The simultaneous
increase in both data

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and computational speed has
ignited interest among computer

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scientists in building
algorithms to organize

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and analyze data -
driving a new era of AI.

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Global corporations are
emphatically embracing

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this trend.

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Using supercomputers to harness
the power of data also extends

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to the fabric of
our being - DNA.

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Nearly 20 years after
the dawn of gene therapy,

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recent advancements are making
it possible for researchers

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to pinpoint what causes
certain diseases, and repair

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and replace genes via CRISPR.

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The genomics revolution will
help scientists understand

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and treat some of our biggest
health care challenges.

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From a high level, we expect
the Information Technology

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and Communication
Services sectors to benefit

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from the modern evolution of AI.

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Companies with the
largest pools of capital

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and data should prevail
among the multiple long-term

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technology trends.

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The Biotechnology
sector continues

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to become increasingly
intertwined and reliant

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on developments within
genomics and gene therapy.

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The sector has seen a
significant increase

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in companies specializing in
genomics-related technology.

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These firms are low quality

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and typically struggle
mid-late cycle

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as liquidity begins
to evaporate.

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In the future, these smaller cap
firms may present an attractive

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acquisition opportunity for some

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of the larger players
in the S&P 500.

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For more ideas about how to
leverage these advancements

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over the next decade, read our
Wells Fargo Investment Institute

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special report: Transformative
technologies -

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Investment opportunities

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in artificial intelligence
and genomics.