As the S&P 500 reaches new all-time highs, fueled by the success of technology stocks, artificial intelligence (AI) emerges as a key driver in their growth. Investors looking to capitalize on the potential of AI can consider two exchange-traded funds (ETFs) that provide exposure to this transformative technology.

The first ETF, Tidal Trust II - Roundhill Generative Ai & Technology ETF, offers investors an opportunity to benefit from the advancements in generative AI. The fund consists of 53 companies involved in the development of AI hardware and software, as well as those likely to leverage AI in their existing businesses. Notable holdings include industry leaders such as Nvidia, Microsoft, Alphabet, and Amazon, whose widespread use of GPUs and cloud computing platforms in AI applications has contributed to their success. The Roundhill ETF has demonstrated impressive performance since its establishment in May 2023, offering investors a return of 40% compared to the S&P 500's gain of 27%. While the expense ratio of 0.75% is on the higher end, long-term investors seeking exposure to the AI boom may find this ETF appealing.

The second ETF, iShares Expanded Tech Sector ETF, takes a more diversified approach by investing in companies across various technology segments, including hardware, software, interactive media, internet marketing, and more. With 278 stocks in its portfolio, the fund provides exposure to AI through major players such as Nvidia, Advanced Micro Devices, Apple, and Meta Platforms. These companies have shown their AI potential through initiatives like integrating chatbots and leveraging AI algorithms in content recommendation systems. The ETF, established in 2001, has a solid track record, delivering a compound annual return of 10.6% since inception and outperforming the S&P 500's average annual return of 7.9%. With an expense ratio of 0.41%, iShares Expanded Tech Sector ETF offers a more cost-effective option for investors.

Both ETFs hold positions in AI-focused entities like C3.ai, Micron Technology, Palantir Technologies, and are positioned to benefit from the continued growth of AI technologies. While the success of these ETFs largely depends on the realization of AI's potential, investors have the advantage of diversified portfolios that include companies with thriving businesses beyond AI.

It is worth noting that investing in AI carries risks, and the performance of these ETFs is subject to market fluctuations. However, the increasing importance of AI in various sectors and the potential for continued value creation make these ETFs attractive options for investors seeking exposure to this innovative technology.

Disclaimer: The opinions and recommendations expressed in this article are solely those of the author and do not reflect the views of The Motley Fool. The author has no position in any of the stocks mentioned. The mentioned companies have positions in various AI-related stocks. Investors should conduct their own research and analysis before making investment decisions.