Artificial Intelligence and blockchain are two of the biggest technological advancements that the world is watching with great anticipation. While blockchain is still lost in regulatory issues and cryptocurrency problems, artificial intelligence is moving ahead quickly. Tech giants, from Google to Facebook, are busy developing their own AI.
As an investor, picking the right AI Company right now could make a huge difference to your portfolio later. Companies dealing in artificial intelligence are opening new jobs and getting funded too. The number of AI startups increased by 113% between January 2015 and January 2018, which other startups increased by just 28%. Consulting giant Accenture believes using AI could boost the profitability of a company by 38 percentage points and add $14 trillion to the economy in additional gross value added (GVA) by 2035.
While Amazon is not the first company you think about when it comes to AI, we often tend to forget about Alexa. Not only this, it has one secret weapon that most people ignore while talking about the e-commerce giant- Amazon Web Services (AWS). However, even on a superficial scale, Alexa is the only thing Amazon needs to become the biggest AI giant you know. The company is already sitting on a mountain of data about its customers and products, and every time a user engages with Alexa; its AI assistant becomes even stronger.
The Jeff Bezos led company is also depending on its powerful machine learning algorithms to suggest products to its customers and offer better deals. The company is on a home robot codenamed Vesta that could foster its ambitions further. Companies with similar ambitions have tried and failed, but Amazon has both deep pockets, patience, and an AI that could possibly be its trump card. The company’s stock was trading at $1,964.52 at press time, down by 0.68%.
When it comes to taming AI, you can’t go further than Alphabet. The Google parent has acquired a slew of AI firms in the past 3 years. The company’s CEO Sundar Pichai has focused on the company’s “AI-first” future repeatedly. The most potent application of this vision is Google Lens. A less talked about project is titled AutoML that uses neural networks to create better neural networks.
The company’s AI arm DeepMind recently unveiled its AlphaFold algorithm that predicted protein-structure with surprising accuracy. It is a breakthrough that could help researchers understand diseases better and create more efficient drugs. At the time of writing, Alphabet stock was trading at $1,121.55 with a 1.37% downside.
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Chinese tech companies are now taking their US rivals head-on. In fact, the Allen Institute for Artificial Intelligence predicts that China may have a stronger presence in the top 10% AI papers by 2021 than the US. By the year 2025, it will have more top 1% papers compared to the US. China’s Google -Baidu, understands its unique position in ushering into an AI future, and the company is doing just that. It even held an AI developer conference in Beijing about a year ago, unveiling a new AI chip and self-driving cars.
This month, it partnered with chipmaking giant Intel to work on the latter’s Nervana Neural Network Processor for training. The partnership will be on both the software and hardware side and help Baidu work more extensively on its PaddlePaddle deep learning framework. Baidu is a relatively low-priced stock compared to Alphabet and Amazon and traded at $112.25 with a 0.41% upside at press time.
Another relatively low-priced stock, SalesForce is trading at $156.75 at press time. The company is busy doing commendable work in AI, and it has nothing to do with high-flying concepts like self-driving cars or designing a self-sufficient AI. Instead, it is working on bringing the technology to email for marketers around the world.
It could help them collect and analyze user data and understand its customers better. This could further lead to better user persona creations, more efficient tracking of the buyer’s journey, and more accurate predictions for trends. While it is a smaller company, its platform is being used to send over 4.1 billion emails each day.
The global consulting company is putting extensive efforts into better AI research. It is working to create a more customized app development and customer development. It is also using it in inventory management and data analytics. Overall, there are few departments in the company that is not affected by the AI revolution.
It makes sense for the company to dive deep into this field because their business revolves around data and analytics. Investing in better tech has also helped them post striking sales and cash flow figures, unparalleled in the consulting industry in the past 5 years. The company’s share price has grown by 146% during the period. Its stock is trading at $194.69 with a 0.37% upside.
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We must understand that China is at the helm of AI adoption in the world. In 2019, the sale of Voice AI interfaces was higher in China than in the US. It is likely that their biggest companies like Alibaba, Baidu, and Xiaomi will quickly use their potential to make a huge market impact in the upcoming years. Cloud-centric companies will also be creating a bigger footprint in this arena. More enterprises are getting ready to either use or explore the uses of this technology in their businesses.
Artificial intelligence is “the” technology that could usher us into a new world. Facebook is one of the companies looking at artificial intelligence to change the way it works. In the future, we should expect more tech giants contribute to this technology and create better products. Perhaps the most common example of this is Google’s smart answer feature in emails. To get a slice of this pie, dive into any one of these stocks and watch your portfolio get stronger with future-proof tech. It would be better to keep your eyes on American blue-chip stocks and Chinese technology giants for some time before a valuable startup emerges on the scene.
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