Key Takeaways
- Artificial intelligence impacts every aspect of our lives, from our search engine results to how our products get delivered, photo apps, face ID, and on, and on.
- There are many opportunities for investing in AI right now as companies worldwide look to capitalize on this technology.
- Some insurance companies are now fully backed by AI, and there are even AI investment apps available to the average investor now.
Conceptually, AI is to the 2020s what DNA was to the 1990s, what bandwidth was to the early aughts, and mRNA was to the pandemic. You can’t ignore the power of artificial intelligence because it’s part of everyday life now. AI is designed to perform typical tasks involving some degree of problem solving and decision making that humans would normally do. Those tasks now range from making decisions regarding an insurance claim all the way to creating images from scratch based on text prompts.
Many new uses of artificial intelligence, the technology, are still being discovered. Yet, if you think about the evolution of services like Siri or Alexa in our everyday lives, it’s here too.
For today, we’ll look at the best artificial intelligence stocks so you have some investment opportunities to consider if you’re a proponent of this space.
How can you invest in Artificial Intelligence?
While there are many different ways to invest in AI, it is typically a layer of a company’s tech stack, there’s still no clear AI company the way Google was the search engine or Tesla is electric. Here are the investable industries employing substantive AI right now.
Financial Services
Financial services rely on AI-powered technology for fraud detection, underwriting loans, customer service, algorithmic trading, and everyday banking services to simplify processes for customers.
Algorithmic trading is one area that fascinates us here because this technology is being used to minimize transaction costs, improve order execution, and minimize human errors involved in trading securities. As we all continue to look for risk reduction in a volatile stock market, it’s worth noting that the algorithmic trading industry will be worth up to $19 billion annually by 2024.
Actual AI investing, where the neural networks are assessing markets, not just running complex algorithms, is rarer still. Q.ai’s artificial intelligence scours the markets for the best investments for all manner of risk tolerances and economic situations. Then, it bundles them up in handy Investment Kits that execute specific investment strategies like shorts and pair trades.
Healthcare
AI is being used in healthcare in a number of ways, though most of the applications have to scale fully, from tools that can detect diseases and review images like xrays and scans to managing patient flow to recommending next best actions.
Since healthcare is such a data-driven field, AI’s role is growing rapidly. AI can also be used for recognizing medical images, streamlining workflow with physicians and hospital staff, and providing administrative assistance. The World Economic Forum even confirmed that AI could help detect tuberculosis, which would be a significant breakthrough for society.
Insurance
Insurance companies are starting to rely on the power of AI for help with many aspects of the business, from the administrative registration process to handling insurance claims. Lemonade is the first insurance company that’s entirely powered by AI.
Supply chain management
While we keep hearing about supply chain issues in the news, it’s worth mentioning that many companies rely on AI to power the entire supply chain and logistics process. Here are some of the common examples of how AI is impacting supply chain management:
- Supply chain automation, from document processing to chatbots for customer service management
- Transportation automation, with many companies investing in autonomous trucks
- Predictive analysis for more accurate forecasting
- Quality control
- Supplier relationship management
Advertising and media
We recently looked at how AI-based tools like DALL-E 2 and DALL-E Mini can create images based on text prompts to generate AI art. Advertisers are using the power of AI to predict customer demands, provide suggestions for users, and handle the entire shopping experience.
It’s also worth mentioning that industries like cybersecurity, information technology, and even retail shopping will continue to see AI-powered advances. Any company in one of these fields could be worth investing in if you’re looking for AI investment opportunities.
While some companies focus on creating AI-based services, there are many other companies that are simply focused on investing in AI to improve business operations. Many tech giants are selling AI analytical services to enterprise clients for sizeable contracts. These services related to AI can range from cloud computing to client software tools.
What are the best AI companies to invest in right now?
Here are the best companies to invest in right now if you’re looking to get into the AI space.
Alphabet Inc. ($GOOGL)
Google’s parent company is one of the global leaders in AI research. You don’t have to look far to see the reach of Google’s AI technology as the search engine algorithm likely brought you to this article. AI is also used in every aspect of Alphabet’s business, from accurately organizing your photos to predicting where you want to travel with Google Maps.
While we’ve all seen the power of AI in Google, it’s worth mentioning that Alphabet recently purchased the AI startup Alter for $100 million. Alter is an avatar startup that helps creators and brands express virtual identities. Many analysts believe that this move was made to help Google compete with TikTok. This comes on the heels of the recent acquisition of Mandiant as Alphabet increases its investment in AI and cloud security.
Microsoft ($MSFT)
Microsoft uses AI-powered technology for a variety of its services, but they just announced the introduction of an AI-powered graphic design tool. Microsoft Designer will be a graphic design app in Microsoft 365 that will use the same AI technology found in DALL·E.
Microsoft’s Azure AI platform allows companies to create innovative AI services.
Palantir Technologies Inc. ($PLTR)
Palantir is a data analytics company that uses AI tools to help people make decisions based on better data analysis. This smaller growth company uses AI to analyze data and recommend decisions to a variety of customers. The Palantir Apollo is used for improving delivery systems and automating configurations. Palantir has even been named a leader in the field of AI platforms as the company’s software is used across 50 different industries. The company recently announced that it expects to report between $503 million and $505 million in revenue for the 4th quarter of 2022 as they continue to build the digital infrastructure required for continuous industrial progress.
Lemonade ($LMND)
This is the first insurance company fully powered by AI. When you check out the website, you’ll directly deal with “Maya,” the AI bot that will help you with every step of the process, from signing up for an insurance policy to filing a claim. Many users have turned to Lemonade because you can file an insurance claim in seconds without ever speaking to anyone about it.
Tesla ($TSLA)
Tesla is so dedicated to AI that the company holds an annual AI Day that’s used as a recruitment tool to attract the brightest minds in the field. Tesla has been teasing a humanoid robot, self-driving cars, and the idea of a robot taxi service that would be a mix of Uber and Airbnb as the company continues to focus on improvements in AI.
Amazon ($AMZN)
The entire company uses AI technology in some fashion, from forecasting customer demand to the Alexa device that can be found in many homes. Amazon uses AI at some fulfillment centers as robots work with human beings. The company then uses AI for product forecasting as it would be difficult to maintain inventory levels with such a wide variety of items available online. Amazon also utilizes chatbots for customer service functions to help make the entire shopping process smoother.
Additionally, Amazon Fresh and Amazon Go stores use the Just Walk Out payment system where you don’t have to deal with a human to check out your purchases.
Workday, Inc. ($WDAY)
Workday believes that AI is changing the way companies use HR analytics. The company helps larger firms with AI-powered and cloud-based HR services. The companies that use Workday are given analytics tools to help with making data-driven decisions and financial tools for budget planning. The company mainly uses AI for informed decision-making regarding staffing, insights on unlocking opportunities, and improving experiences so that workers can realize their full potential.
International Business Machines Corp. ($IBM)
IBM was actually at the forefront of AI-based technology when the Deep Blue supercomputer defeated chess champion Garry Kasparov back in 1997. IBM’s Watson has recently made headlines for its AI efforts as it’s used to predict future occurrences, optimize tasks, and help folks with time management.
IBM recently announced that they are training customer service robots to sound more human for improved connections. IBM offers conversational chatbots to business clients who want to improve customer service and digital experiences.
How Q.ai uses Artificial Intelligence
If you’re looking to see the power of AI in action, you don’t have to look any further than Q.ai. Our company is built to leverage artificial intelligence to offer investment strategies for those who don’t want to be burdened with the stress of trying to pick individual stocks. Q.ai utilizes artificial intelligence in three key ways to help investors:
- Creating Investment Kits. The power of AI is used to assess every investment every week and to bundle them into kits that users can use to invest with specific parameters. Investors can choose kits like Precious Metals, Tech Rally, Value Vault, and Short Squeeze. You don’t have to worry about deciding which individual securities to invest in or how they should be weighted within your portfolio — the AI does it for you.
- Mitigating risk. AI weights the assets in each Investment Kit to reduce the risks for users, a truly unique and highly effective application for the everyday investor.
- Handle volatility. Portfolio Protection helps you weather the ups and downs in the market due to the uncertainty in the world right now. This feature uses AI predictions to forecast possible risks and adjust portfolio allocations.
If you’re hoping to make money in the AI space, you can invest in one of our Investment Kits. AI-powered Investment Kits take the guesswork out of investing so you don’t have to worry about where your money’s going.
Bottom Line
It will be fascinating to see how the power of AI technology will be used in more aspects of our daily lives. But there are many different ways that you can invest in AI today. According to Zion Market Research, the global AI industry should grow to $422.37 billion by 2028, increasing from $59.67 billion in 2021. Because AI touches so many parts of business in multiple industries, the question is not whether to invest in AI, only where.
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