Stocks for Investing in Artificial Intelligence
Artificial intelligence is probably one of the big-time shifts in the technology and maybe AI is the beginning of a new long term Trend with exponential growth in the coming years.
A lot of tech companies use AI but only for supporting their main business because AI is at the beginning of the development and not a mature technology. This means AI have a plenty room to grow and can make several industries, from healthcare to finance, more efficient.
some major players:
International Business Machines Corp. (NYSE:IBM)
IBM with its Watson is one of the pioneers in AI technology and continuously makes investments since 1950. IBM’s Cognitive Solutions segment has already made 5.3 Billion USD revenue which has increased 1.4% from a year ago but the total revenue of the company is still in decline. Investors make more and more pressure on IBM so that Watson should more contribute to revenue generating.
“Consider a bank in Brazil that has 50 different products, the average call center rep cannot handle 50 products. So they’re using Watson in their call center—not to replace the call center rep, but actually help the call center rep understand their products and their offerings and be able to serve that customer much better than he or she may have been able to.”
IBM CEO Ginni Rometty
The main goal of IBM is making businesses of many different sectors more efficient by using Watson.
Warren Buffett has also invested in IBM.
Alphabet (GOOG, GOOGL)
Google acquired DeepMind, British AI company started by neuroscientist and programmer Demis Hassabis, for $400 million in 2014. Alphabets program AlphaGo, developed by deep-mind, defeated top human players in the ancient game of Go. This was one of the greatest victories of AI over humans.
Alphabet uses AI for own business. RankBrain is one of the important AIs used by search engine. Google uses AI also for voice and image recognizing.
Alphabet intends to make AI available for everyone. The Company has already introduced the Video Intelligence API to the developers at the Google Cloud Next Conference in San Francisco. The technology can recognize some objects, e. g. dogs, in videos.
“Google’s cloud platform already delivers customer applications to over a billion users every day,”
Fei-Fei Li, chief scientist of AI and machine learning at Google Cloud
Apple’s Siri virtual assistant uses AI to recognize and understand human voices. Apple’s iPhone has also AI to recognize faces and to suggest texts.
“We’re glad to see the industry engaging on some of the larger opportunities and concerns created with the advance of machine learning and AI …. We believe it’s beneficial to Apple, our customers, and the industry to play an active role in its development and look forward to collaborating with the group to help drive discussion on how to advance AI while protecting the privacy and security of consumers.”
Tom Gruber, Apple’s head of development for its Siri
Apple, like other major players, is heavily investing in machine learning and AI. But one of the biggest advantages of Apple is that the company gathers huge data from its customers and users of its products. This is also a concern for privacy.
Apple, like Alphabet, plans to use AI in self-driving cars.
Amazon is devoting a lot of resources to AI and has plans to make AI to one of its core businesses.
Alexa, an AI-powered virtual assistant as a prime example of the company’s potential, can recognize and answer questions and is constantly learning from customers. By further developing AI, Amazon intends to anticipate the customer’s needs in an AI controlled prime eco-system.
Microsoft Corp. (MSFT)
Microsoft is investing in AI for almost 25 years. In 2016, The Company acquired SwiftKey ($250 million), which uses AI to predict the texts what a user is typing.
Microsoft focuses on more business-related AI APIs which can perform natural-language processing and conversational computing. The Company has introduced a new AI service “Calendar.help” to scheduling meetings.
Another companies, heavily investing in AI, are Facebook (FB), Nvidia Corp. (NVDA), Baidu (BIDU), Boeing Co. (BA) and Tesla (TSLA).