AI Stocks In Consumer Applications
It's no secret that Alphabet, Microsoft, Facebook (FB) and Amazon are all spending big bucks on AI technology. The tech giants are putting AI in consumer products and services, such as voice-activated smart home devices. Google and Facebook use AI tools in digital advertising.
Amazon uses AI to customize online retail offerings and recommend products to website visitors. Facebook uses AI to enhance its activity feed, photo and social media apps.
Meanwhile, Netflix utilizes AI to personalize its internet TV content for subscribers. Netflix stock also is on the Leaderboard.
Omdia forecasts that annual AI software revenue will increase from $9.7 billion worldwide in 2018 to $119.3 billion in 2025.
Artificial Intelligence Stocks Span Industries
In addition, AI competition is fierce in many industries. They include financial services, pharmaceuticals, health care and cybersecurity. Worldwide spending on AI software for retail uses will boom to $9.8 billion in 2025, up from $1.3 billion in 2019, forecasts Omdia.
In the energy industry, startup C3.ai has teamed with Baker Hughes (BKR) and Microsoft to use artificial intelligence in preventive maintenance. Thomas Siebel, who started Siebel Systems and sold it to Oracle (ORCL) for nearly $6 billion in 2006, founded C3.ai.
In October, Microsoft and Adobe Systems (ADBE) partnered with artificial intelligence startup C3.ai to sell customer relationship management software, Salesforce.com's (CRM) core business.
There's plenty AI competition in enterprise software.
Meanwhile, Salesforce's Einstein tools improve sales forecasts. The AI software uses a company's historical lead and account data to predict which deals are more likely to close. Salesforce has expanded Einstein tools into financial services and other markets.
Salesforce on Nov. 24 said its Einstein platform now delivers more than 80 billion AI-powered predictions daily for sales, service, marketing and commerce. That's up from 6.5 billion in October 2019.
Adobe: A Leaderboard Stock In AI
In e-commerce, Adobe's AI tools personalize website content to spotlight products or services that online shoppers are most likely to buy. Also, Adobe also belongs to the IBD Leaderboard.
Further, The IBD 50 roster of growth stocks has featured artificial intelligence stocks in online dating, digital advertising and business communications.
In addition, other companies using AI include:
Square (SQ): Square Capital, part of digital payment processor, provides loans to merchants. Square Capital uses an AI-driven credit assessment platform in granting new loans.
Match Group (MTCH): Controlled by IAC (IAC), Match is using artificial intelligence to improve its Tinder mobile dating app. Tinder's new "Super Likable" feature uses machine learning.
Trade Desk (TTD): The digital advertising firm provides automated tools to help customers buy online ads and optimize return on spending. Trade Desk's AI tools identify the best websites to buy ads on.