Take a moment to consider all of the different applications for artificial intelligence technology in the business world. The practical applications are seemingly endless, which is why investing in companies that are involved in developing and leveraging artificial intelligence technology could be a wise decision. For example, using AI-powered chatbots to turn data analytics into a meaningful conversation can be a game-changer for companies in need of automated customer service. Intelligent cybersecurity solutions powered by AI technology can help companies to detect vulnerabilities and stay vigilant against hackers. AI can also transform the way businesses handle logistics and supply chain tasks and even improve manufacturing processes.
The bottom line is that more and more companies are going to turn to this fascinating and innovative technology to improve the way they handle business. More than half of businesses have reported a boost in productivity after implementing AI, and roughly 9 out of every 10 leading businesses have ongoing investments in artificial intelligence. With the global AI market expected to reach $267 billion by the year 2027, there’s plenty of reasons to consider investing in companies with exposure to the technology. Let’s take a look at 3 stocks to consider buying if you want exposure to the AI revolution.
1. Alphabet
First, we have Alphabet (NASDAQ:GOOG), a giant technology company that owns the world’s largest online index of websites which are accessible through automated search technology. The company’s Google (NASDAQ:GOOGL) search engine, Google Cloud, YouTube video platform, Chrome web browser, and Android smartphones provide Alphabet with huge amounts of data that fit directly into improving and leveraging artificial intelligence technology. This is a big-tech company that is a great addition to any long-term portfolio given the massive amount of advertising revenue it generates and its growing cloud business, and there are some very compelling ways that Alphabet is using AI.
Some examples include the way that the Google search engine uses AI to automatically generate responses for each query and how Google Ads is powered by machine learning to help automate the bidding system. The company is exploring different ways to add AI techniques to the company’s mobile search platform along with incorporating AI into the home automation space. Alphabet’s rapidly growing Google Cloud segment uses machine learning to improve its cloud computing solutions and the company is investing in things like self-driving vehicles that have huge potential over the next few years.
2. Pinterest
You might not immediately recognize the connection between artificial intelligence and this company’s visual-based social media platform, but the truth is that AI is propelling Pinterest (NYSE:PINS) to new levels of success. As the owner of one of the largest social networks in the world, Pinterest’s visual discovery platform is built around each user’s personalized interests. At the heart of what makes its platform so special is how the company leverages artificial intelligence to analyze mountains of data from its millions of users. Pinterest can analyze the data from its users to tailor search results and sell products through the advertisements on its platform.
Everything from recipe suggestions based on a user’s diet to personalized recommendations for home décor is made possible thanks to deep learning, which is a subset of artificial intelligence and machine learning based on algorithms inspired by the structure and function of the brain. It seems that this unique approach to using AI is working well for the company. In 2020, Pinterest reported a 48% year-over-year increase in revenue to $1.7 billion and boosted its Global Monthly Active Users to 459 million, up 37% year-over-year.
3. Dynatrace
Dynatrace (NYSE:DT) offers a software intelligence platform for the enterprise cloud that helps its customers to modernize and automate their information technology operations. There are plenty of companies out there that have had to speed up the digitalization of their businesses, which means that Dynatrace has been busy helping to make that happen. What’s perhaps the most interesting thing about this company’s software is the way that it is powered by artificial intelligence.
Dynatrace’s platform uses AI to monitor and optimize application performance and development, IT infrastructure, and user experience for companies all over the world. The company’s “Davis” AI engine automatically processes billions of dependencies to provide precise answers instantly. It’s fascinating to think that this company has created software that can assist nearly any company migrating to the cloud, and Dynatrace’s earnings have been growing substantially as a result. The company reported Q3 total revenue of $182.9 million, up 28% year-over-year, and raised its full-year fiscal 2021 guidance back in February, which is another reason why it’s a very intriguing AI stock to watch going forward.