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Big Tech and Financial Firms Lead Adoption of Generative AI to Boost Profits

  • Financial and consumer companies are leading the way in adopting generative AI to cut costs and build loyalty.

  • Evercore identified 26 stocks over $10B market cap making strides with AI, based on earnings call AI mentions and share price movements.

  • Top picks include Google, Amazon, Nvidia, JPMorgan, Intel based on market cap and AI exposure.

  • Additional stocks cited span technology, industrials, healthcare sectors with high AI exposure.

  • Analysts see significant profit potential for companies successfully enabling and utilizing AI.

businessinsider.com
Relevant topic timeline:
Main topic: The potential of generative AI to transform the economy and create new opportunities for startups. Key points: 1. The economics of traditional AI have made it difficult for startups to achieve success as pure-play AI businesses. 2. Generative AI applications and large foundation models are changing the game by offering incredible performance, adoption, and innovation. 3. Generative AI has the potential to introduce new user behaviors and disrupt existing markets, with unprecedented levels of adoption and revenue growth.
Main topic: The use of generative AI software in advertising Key points: 1. Big advertisers like Nestle and Unilever are experimenting with generative AI software like ChatGPT and DALL-E to cut costs and increase productivity. 2. Security, copyright risks, and unintended biases are concerns for companies using generative AI. 3. Generative AI has the potential to revolutionize marketing by providing cheaper, faster, and virtually limitless ways to advertise products.
Main topic: Investment strategy for generative AI startups Key points: 1. Understanding the layers of the generative AI value stack to identify investment opportunities. 2. Data: The challenge of accuracy in generative AI and the potential for specialized models using proprietary data. 3. Middleware: The importance of infrastructure and tooling companies to ensure safety, accuracy, and privacy in generative AI applications.
Chinese tech firms, including Kuaishou and iQiyi, are seeing stronger profits as they harness the potential of generative AI in their operations and content creation.
Entrepreneurs and CEOs can gain a competitive edge by incorporating generative AI into their businesses, allowing for expanded product offerings, increased employee productivity, more accurate market trend predictions, but they must be cautious of the limitations and ethical concerns of relying too heavily on AI.
More than half of investors, especially from the Baby Boomer and Gen X generations, are comfortable following financial advice from generative AI systems as long as it is vetted by a human financial advisor, according to a survey by CFP Board.
The US consumer behavior is driven by mixed signals due to an uncertain economy, with increasing consumer confidence, concerns about rising prices and job security, and a trend of trading down and splurging on certain categories, according to McKinsey senior partner Kelsey Robinson; McKinsey AI experts Michael Chui and Alex Singla discuss the opportunities and benefits of generative AI (gen AI) in various industries, such as banking, healthcare, marketing, and R&D, and estimate a potential value of $2 trillion to $4 trillion annually for businesses that effectively harness gen AI; Companies should prepare for the adoption of gen AI, aligning it with their strategic goals, encouraging employees to explore and learn about the technology, and using it to create value and gain a competitive advantage; However, the adoption and impact of gen AI may vary based on the region and the specific use cases.
The rush of capital into Generative Artificial Intelligence (AI) is heavily dependent on Nvidia, as its better-than-expected second quarter results and forecast raise investor expectations and drive capital flows into the Generative AI ecosystem.
Adobe's strong performance and integration of generative AI in its products have led to high valuations for the stock, but there are concerns that competitors may narrow the gap and reduce its advantage. While near-term growth is expected, the rich valuations may limit strong returns relative to the broader market index, leading to a neutral rating for the stock.
The surge in generative AI technology is revitalizing the tech industry, attracting significant venture capital funding and leading to job growth in the field.
Generative AI, a technology with the potential to significantly boost productivity and add trillions of dollars to the global economy, is still in the early stages of adoption and widespread use at many companies is still years away due to concerns about data security, accuracy, and economic implications.
Generative AI has the potential to increase global economic output by $7 trillion in the next decade, making the Vanguard S&P 500 ETF a favorable investment choice due to its exposure to AI stocks such as Microsoft, Alphabet, Amazon, Nvidia, and Tesla.
Mastercard is still navigating the challenges of implementing generative AI, but its extensive experience with other forms of AI and its established governance process provide guidance for other companies.
Artificial intelligence (AI) stocks have experienced a recent pullback, creating buying opportunities for companies such as Taiwan Semiconductor and UiPath, which are poised for growth due to their involvement in AI technology and products.
Generative artificial intelligence, particularly large language models, has the potential to revolutionize various industries and add trillions of dollars of value to the global economy, according to experts, as Chinese companies invest in developing their own AI models and promoting their commercial use.
Generative AI is increasingly being used in marketing, with 73% of marketing professionals already utilizing it to create text, images, videos, and other content, offering benefits such as improved performance, creative variations, cost-effectiveness, and faster creative cycles. Marketers need to embrace generative AI or risk falling behind their competitors, as it revolutionizes various aspects of marketing creatives. While AI will enhance efficiency, humans will still be needed for strategic direction and quality control.
Three big tech companies are predicted to experience significant growth due to their early adoption of generative artificial intelligence, according to a Wall Street analyst.
The rise of generative AI is accelerating the adoption of artificial intelligence in enterprises, prompting CXOs to consider building systems of intelligence that complement existing systems of record and engagement. These systems leverage data, analytics, and AI technologies to generate insights, make informed decisions, and drive intelligent actions within organizations, ultimately improving operational efficiency, enhancing customer experiences, and driving innovation.
Stock investors should focus on long-term beneficiaries of artificial intelligence, as near-term beneficiaries have already experienced significant share price increases, according to Goldman Sachs. Companies across various sectors, such as communication services, consumer discretionary, financials, and information technology, are expected to see a boost in their earnings per share from AI adoption.
Generative AI can help small businesses manage their social media presence, personalize customer service, streamline content creation, identify growth opportunities, optimize scheduling and operations, enhance decision-making, revolutionize inventory management, transform supply chain management, refine employee recruitment, accelerate design processes, strengthen data security, and introduce predictive maintenance systems, ultimately leading to increased productivity, cost savings, and overall growth.
The generative AI market is predicted to grow by 42% annually, reaching $280 billion by 2033, with Amazon being identified as an AI stock that is worth accumulating for long-term investment due to its resurgence in the second quarter, its strong presence in e-commerce, digital advertising, and cloud computing markets, as well as its leadership in AI through Amazon Web Services (AWS).
As generative AI continues to gain attention and interest, business leaders must also focus on other areas of artificial intelligence, machine learning, and automation to effectively lead and adapt to new challenges and opportunities.
Generative artificial intelligence (AI) services need clear and transparent pricing models to avoid bill shock and hidden costs for businesses, as organizations in the Asia-Pacific region express concerns about consumption-based models and potential budget cuts. Salesforce and other market players are working on pricing strategies for generative AI services, with a focus on monitoring consumption and providing options for customization. The adoption of generative AI tools within organizations also requires careful management and awareness of costs to ensure a positive return on investment.
Adobe's stock has seen a significant increase as the company focuses on incorporating generative artificial intelligence into its content creation and marketing tools.
India's booming startup ecosystem is competing fiercely in the field of generative AI, with chipmaker NVIDIA experiencing exponential stock growth as a result.
Commercial real estate giant CBRE Group is exploring the use of generative artificial intelligence (AI) tools to improve efficiency and save time across its business, with executives expecting the technology to have a significant impact on their operations and the industry as a whole. CBRE has already been utilizing AI and machine learning technology, and its recent foray into generative AI includes the development of a self-service AI tool that allows employees to generate text and summaries, as well as answer questions using information from documents. The company's investments in technology are guided by the need for clear return on investment (ROI) and the importance of experimentation to learn and adapt.
C3.ai's stock has experienced a decline despite the increasing demand for generative AI, leading analysts to express concerns about the company's prospects and providing a downside potential for its stock price.
Alphabet and Taiwan Semiconductor Manufacturing are recommended AI stocks to buy and hold for the long term due to their potential for significant growth in the generative AI market and the booming demand for AI chips, respectively.
Consulting firms are investing billions of dollars in expanding their Generative AI capabilities to meet strong client demand for deploying Generative AI applications and services, with the expectation that these investments will be paid back within a few months of deployment through cost savings and revenue increases.
Investors are focusing on the technology stack of generative AI, particularly the quality of data, in order to find startups with defensible advantages and potential for dominance.
The AI boom presents investment opportunities in high-growth stocks such as HubSpot and MongoDB, which are leveraging generative AI and disrupting traditional models to drive revenue growth and market value.
The rise of artificial intelligence is creating attractive investment opportunities in chip stocks, according to Truist Securities.
Generative AI is expected to have a significant impact on the labor market, automating tasks and revolutionizing data analysis, with projected economic implications of $4.1 trillion and potentially benefiting AI-related stocks and software companies.
Generative AI is transforming various industries, including telecommunications, banking, public safety, B2B sales, biopharmaceuticals, and creative agencies, by enhancing efficiency, improving decision-making, providing customer-centric solutions, ensuring safety and compliance, driving innovation, promoting adaptive learning, challenging the status quo, and offering holistic solutions.
Generative AI has the potential to transform various industries by revolutionizing enterprise knowledge sharing, simplifying finance operations, assisting small businesses, enhancing retail experiences, and improving travel planning.
Artificial intelligence is a top investment priority for US CEOs, with more than two-thirds ranking investment in generative AI as a primary focus for their companies, driven by the disruptive potential and promising returns on investments expected within the next few years.
The rise of artificial intelligence (AI) technologies, particularly generative AI, is causing a surge in AI-related stocks and investment, with chipmakers like NVIDIA Corporation (NVDA) benefiting the most, but there are concerns that this trend may be creating a bubble, prompting investors to consider focusing on companies that are users or facilitators of AI rather than direct developers and enablers.
Generative AI developments are gaining momentum, and CFOs must collaborate with cross-functional teams to implement strategic changes and leverage technology for financial analysis and efficiency improvements, according to Zane Rowe, CFO of Workday. Generative AI has the potential to add trillions of dollars to the global economy, and CFOs recognize the importance of investing in this technology to stay competitive. Rowe also emphasizes the importance of thinking outside the box and hiring team members who can creatively leverage AI in finance and accounting processes.
Generative AI deals have declined by 29% in Q3 2021, potentially due to Big Tech companies dominating the market and scaring away investors and startups, but opportunities still exist in enterprise software-based AI and arbitrage AI.
C3.ai's stock remains expensive and is likely to decline further based on fundamentals, but there is potential for growth acceleration in the coming quarters, particularly in the field of generative AI applications. The company's business model transition is leading to more customer wins, especially in government and defense sectors, but questions remain about C3.ai's ability to retain customers and expand. The stock is currently overvalued and lacks a strong value proposition for potential customers.
Generative AI start-ups, such as OpenAI, Anthropic, and Builder.ai, are attracting investments from tech giants like Microsoft, Amazon, and Alphabet, with the potential to drive significant economic growth and revolutionize industries.
Generative AI tools are being used by entrepreneurs to enhance their branding efforts, including streamlining the brand design process, creating unique branded designs, and increasing appeal through personalization.
ExxonMobil's Senior IT Executive, Andrew Curry, states that high-quality data is crucial for successful AI and machine learning initiatives, highlighting the importance of having a strong data strategy in place to make the most of emerging technologies. While ExxonMobil is cautious about utilizing generative AI, the company plans to leverage ML and AI capabilities in areas such as finance and trading, supply chain management, and interpreting seismic surveys.
Generative AI, a type of artificial intelligence technology that can produce content based on user specifications, has gained significant attention and investment. DBRG, a digital infrastructure asset manager, is well-positioned for growth due to the increasing demand for computational power required by AI workloads. The company offers deeply discounted preferred shares that provide high yields and present a solid investment opportunity for income investors.
The generative AI market is projected to reach $1.3 trillion by 2032, and companies like Amazon and Alphabet are leading the way by incorporating the technology into their operations, which could drive long-term growth for investors.
The financial results of Alphabet and Microsoft show that new AI technologies are helping these companies grow their revenues, indicating strong market demand for software that runs off generative AI, which is good news for startups in the space.
Generative AI is experiencing a moment of rapid adoption in the enterprise market, with the potential to fundamentally change the rules of the game and increase productivity, despite concerns about data protection and intellectual property.
Despite recent advances in generative artificial intelligence (AI) driving a potential upswing in the stock market, not all AI stocks are expected to profit from the boom, with Palantir's long history of AI innovation and improving financial results positioning it as a good investment choice, while C3.ai's ongoing struggles and lackluster financial performance make it a stock to avoid.