If you’re an active investor and often look at new companies you might buy stocks from, you’ve definitely heard a huge increase in the use of the term “artificial intelligence” or AI. there will be This technology has caught the attention of many investors as something new and fresh to consider.
In reality, AI has been around for quite some time. So why is it so talked about and why is it so important?
Let’s take a closer look at AI. Let’s take a look at why AI is getting new attention. Along the way, here are some companies to consider as an AI investment.
The chatbot revolution kickstarted AI conversations
Let’s start with a basic definition of AI that isn’t inspired by science fiction movies. alphabet (Google 0.49%) (GOOG 0.31%) defines AI as “a set of technologies that enable computers to perform a variety of advanced functions, such as seeing, understanding and translating spoken and written language, analyzing data, and making recommendations. includes”.
Essentially, engineers can train AI to perform basic human tasks, especially those related to processing data. A good recent example of AI being used is his ChatGPT on OpenAI. ChatGPT can perform tasks in an almost human-like way, such as writing an email or creating a business plan, by inputting various (massive) data and parameters about how the data is used. But if you ask a question about something the chatbot doesn’t know, it can’t do its job (and in some cases, make up the wrong answer).
The Google search engine (which uses AI differently to a lesser extent) handles about 8.5 billion searches every day. There are concerns that ChatGPT could grow its share of Google’s search business if chatbots prove to be a superior alternative.when you do microsoft (MSFT -1.13%) shook up this huge market by announcing the launch of a format powered by ChatGPT, the Bing search engine. In the fourth quarter alone, Google searches brought Alphabet his $42.6 billion in revenue.
Early results suggest the technology is not ready to compete effectively. In one exchange, Microsoft’s chatbot told a user that he should break up with his wife. Another interaction insulted users by comparing them to various dictators.
It clearly needs some tweaking, but many companies are interested in using it.
AI is not a new technology
cloud strike (CRWD -0.94%)A cybersecurity company, uses something called machine learning (ML). It uses AI technology to extract data and learn continuously to help customers and give them an edge over the competition. This software constantly analyzes the user’s resources and tries to detect patterns that may indicate whether some activity is a threat. Additionally, if one customer is attacked, the same threat pattern is distributed to all of her other CrowdStrike customers so that another customer is not vulnerable to the same type of attack.
Palantir (PLTR 0.99%) is another company that uses AI as the backbone of its products. Palantir specializes in data analytics and can process large amounts of data from a variety of disparate sources to derive actionable insights. The platform started out with public sector/government use (it reportedly helped track Osama bin Laden’s last hiding place), but is now rolling out the same functionality to the private sector. Because software affects a wide variety of companies (for example, Tyson Foods Having used it in 20 projects to detect inefficiencies, ultimately saving over $200 million), Palantir’s AI-powered data analytics platform is becoming more commonly used. will be
The Moment AI Takes the Spotlight
Both CrowdStrike and Palantir make great investments and are a good starting point for AI investments. Alphabet is another great investment, but some wonder if its reign as the search king will end after the deployment of Microsoft Bing’s chatbot.
Alphabet CEO Sundar Pichai said during the company’s latest conference call that Alphabet has been an AI-first company for more than six years, developing the backbone of many of the AI technologies in use today. We may see results in AI research in the coming years as competition has forced Alphabet to reveal its hand. That investment should pay off in the long run.
AI isn’t a new technology, and it won’t take everyone’s jobs, as some people concerned about the technology think. Instead, it helps automate and improve aspects of data usage. There has been a time when AI was in the spotlight, but the discussion about this technology is becoming more and more popular, and investors should leverage their portfolios accordingly and take advantage of technological changes.
Alphabet executive Suzanne Frey is a member of The Motley Fool’s board of directors. Keithen Drury has held positions at Alphabet and CrowdStrike. The Motley Fool has positions and endorses Alphabet, CrowdStrike, Microsoft and Palantir Technologies. The Motley Fool’s U.S. headquarters has a disclosure policy.