Cathie Wood is a firm believer that artificial intelligence (AI) has the capacity to fundamentally transform the way in which enterprises function. As a result, a number of the largest holdings in her Ark Invest funds are invested in artificial intelligence and its numerous enterprise applications.
Recent favorites of her and her team in the field of artificial intelligence are UiPath (NYSE: PATH). All six of Ark Invest’s active exchange-traded funds (ETFs) hold the stock. Nevertheless, subsequent to a substantial surge in the stock value, the funds are reducing their investment in UiPath in order to reallocate the capital to an alternative innovative stock.
AI could be a significant growth driver for another top holding, and the team is not hesitant to back up its claim with action. As a result, the Ark Invest team increased the weight of Zoom Video Communications (NASDAQ: ZM), which was already its fifth-largest holding, in the Ark Innovation ETF.
Ark maintains the second-largest position across all of its funds and the third-largest position in the flagship Ark Innovation ETF with UiPath. The organization focuses on robotic process automation (RPA), which enables businesses to automate repetitive tasks such as client onboarding and data input.
There are two methods in which UiPath utilizes artificial intelligence. Implementing automation fundamentally necessitates some type of algorithm. However, sophisticated RPA systems necessitate supplementary artificial intelligence. Relevant data, for instance, could become entangled in non-uniform contracts. With greater precision than a human, UiPath’s Document Understanding AI can extract the pertinent data and input it into a standardized database.
AI is also being utilized by UiPath to assist businesses in identifying processes that may be suitable candidates for RPA via Process Mining AI. Process Mining has the potential to generate additional revenue for UiPath while also serving as a practical standalone solution for organizations seeking to enhance their operational efficiency through manual labor.
