CNBC “Mad Money” host Jim Cramer has been on the artificial intelligence train for a while now.
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He’s touted the power of the so-called Magnificent Seven, that small group of AI-charged tech stocks that have kept the markets up this year.
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He said on June 8 that the markets are currently up “because the AI bull story triumphed over the AI hype story.”
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“Every day some analyst comes up with something positive on how artificial intelligence is gonna change the world,” Cramer said, explaining how these optimistic outlooks send positive ripples throughout the markets. “But we also have more skeptical analysts warning you to look out because it’s all hype.”
Cramer said the debate comes down to productivity.
Citing an example about a dressmaking relative of his, he said that AI-powered products like Adobe (ADBE) – Get Free Report Firefly save her a ton of time.
“That doesn’t mean Firefly is going to destroy dozens of jobs. It doesn’t mean you’re going to make a fortune from it,” Cramer said. “But a designer who only has so many hours in her day just got an extra two days’ worth of time. What’s that worth?”
Cramer said that it’s hard to predict just how AI will be valued as it becomes more integrated into society. But he does think it will lead to higher gross domestic product.
“So much of it is business-to-business, not business-to-you,” Cramer said, “meaning it’s totally invisible to the consumer unless you use it at work.”
This tech, according to Cramer, could make industries and functions — including advertising, quick-service food, customer service and more — both cheaper and more efficient.
“When you consider the scale of the business-to-business opportunity, you can see why AI might be worth far more than most people realize, even if is too early to calculate the exact numbers,” Cramer said.
“I know there’s a lot of hype here, and in some individual cases it is overblown, but anybody who tells you that AI is pure hype, that person is only fooling herself.”