Like most investors, Victoria Green is keeping an eye on the artificial intelligence boom. The chief investment officer at G-Squared Private Wealth believes the gap between AI winners and losers will widen this year. She expects artificial intelligence to become less of a buzzword and more of an actual tool that companies will deploy to improve margins and revenue. G-Squared manages more than $575 million in client assets. “People need to make money on AI,” Green told CNBC in an interview. “At some point, you can't just talk about AI anymore. [the] “You've got to show that progress is being made in the future,” Green said. AI stocks trade at high valuations, but Green said AI use is still in its “early stages,” and stocks that benefit will continue to rise in value. Not just tech Green said AI-related gains aren't just limited to tech stocks. For example, he's bullish on the industrial sector as a long-term investment. “There's going to be significant upgrades to come. This shift to AI isn't temporary,” he noted. “People are going to need more power. They're going to change the way they do business, but they're also going to need to operate more efficiently, especially in terms of power infrastructure. That's everything from warehousing to transportation to power plants,” he said. In the industrial sector, Green named Quanta Services, Eaton and Emerson Global as his top picks. In contrast, Tesla may have been boosted by the AI boom initially, but it's now struggling, said the Merrill Lynch alum. Similarly, Salesforce.com Inc., which plunged 20% in one day last week after its second-quarter guidance fell short of analysts' expectations, could also be an AI loser, he said. “Salesforce.com may have been a canary that indicated some of these legacy software companies were in really bad shape and at risk of disruption,” he said.
