“High” Tech: 6 Cannabis Industry Innovations to Watch in 2023
Arthur C. Clarke, the late British futurist who wrote the novel 2001: A Space Odyssey, once observed: “Any sufficiently advanced technology is indistinguishable from magic.”
Companies that combine the magic of technology with the basics of cannabis are reaping the alchemy of profits.
Below, I examine the top technological trends that I expect to drive the marijuana industry in 2023 and beyond. These megatrends don’t require federal legalization to move forward.
WATCH THIS VIDEO: Proven Criteria for Picking The Best Pot Stocks
As an investor, you need to keep an eye on the following marijuana-related tech developments. They’re turning science fiction into money-making fact.
1) Artificial intelligence (AI) and machine learning (ML).
Marijuana is a fragile plant that requires extreme vigilance, from seed to sale. Pot is difficult to grow and, once it’s grown, to keep fresh. Toxins and pesticides can ruin potency and pose health risks. Supply chain schedules and THC levels require careful management and planning.
Hence the increasing importance in the marijuana sector of AI and ML. Ultra-fast computer programs are being developed to gather data and provide guidance on the optimal ways to grow, store, and distribute marijuana.
2) Synthetic cannabis.
The race to develop “Cannabis 2.0” is accelerating and poised to be one of the most disruptive trends in the marijuana industry, especially in the medical realm.
Big Pharma, as well as small biotech disruptors, are artificially creating cannabis compounds in the lab that perform just like the drug. Synthetic cannabis is cheaper and faster to produce and results in a purer, easier to handle product.
3) Cybersecurity software solutions.
The growing prevalence of hacking, identity theft and data espionage is generating huge demand for cybersecurity in a wide variety of industries and among individuals.
Because pot is federally illegal, many marijuana companies lack access to mainstream banking, which means they must rely on primitive cash-handling tools that are vulnerable to theft and hacking. The field of cybersecurity is rife with investment opportunities, especially for software firms that cater to smaller cannabis enterprises.
4) Blockchain technology.
Every cryptocurrency is supposed to be linked to a blockchain, which is a distributed computer-generated database of all transactions that have ever taken place in the currency.
Blockchains have a multitude of commercial uses aside from crypto. Because blockchains allow businesses to store encrypted data in a ledger, they’re increasingly used in finance, supply chains, and data storage. These uses are particularly valuable for marijuana companies that are locked out of conventional financial services.
5) New agricultural methods.
Sophisticated new techniques are being applied to marijuana agriculture, whether it’s soil-based or hydroponic.
An increasing amount of pot is being grown not in soil but in windowless warehouses. These futuristic “vertical farms” manipulate light, humidity and temperature to grow cannabis. Added to the mix is nutrient-rich water, via hydroponics. By using hydroponics, marijuana growers can grow better weed in less space and with less labor.
6) On-the-spot marijuana testing.
As marijuana use is legalized across the country and knowing that its use can impair executive functions, there’s a growing need for technology to detect impairment from marijuana in the workplace and in society.
Companies that provide small, portable testing kits for employers are booming. One of the fastest-growing niches is the development of roadside technology for the police, in the form of pot breathalyzers.
Editor’s Note: As I’ve just made clear, the marijuana industry is dynamic and rapidly expanding. Every portfolio should have exposure to cannabis-related companies. That’s why I’ve launched a service detailing how you can financially benefit from the “normalization” of weed.
Called Marijuana Profit Alert, my publication is your ultimate guide to reaping profits from the marijuana bonanza.
Through weekly trading alerts, I identify the specific companies that profit from the latest cannabis trends, to create a portfolio of the best available cannabis investments. Click here to learn more.
John Persinos is the editorial director of Investing Daily.
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