Editor’s note: This article was first published in February 2023, shortly after ChatGPT’s launch; the company positions, valuations, AI products and start-ups it describes reflect that time and have changed enormously since, with Google, for example, renaming Bard as Gemini in 2024.
Artificial intelligence (AI) is clearly going to bring major changes. Investors are now asking which companies they can invest in to benefit from artificial intelligence, on the assumption that those companies will become more profitable thanks to AI. That’s why we’re going to name both the companies that are already putting artificial intelligence to work and some lesser-known ones that are developing it.
Needless to say, this is not a recommendation to buy, and every investor should do their own analysis. We should never forget that with innovative technologies the playing field becomes quite unpredictable. We’re simply answering the question of where an investor might put their money to benefit from artificial intelligence.
How to invest in the AI boom: these companies will use it to grow faster
Alphabet Inc. (GOOGL)
Alphabet is undoubtedly well placed to take advantage of artificial intelligence and, in fact, has been at the forefront of it. Alphabet has also invested in several AI start-ups and is working on a range of AI projects, from healthcare automation to self-driving cars.
So far no search engine has managed to overshadow Google, but after ChatGPT burst onto the scene, Microsoft said it would build it into its Bing search engine. Google hit back with Bard, a conversational chatbot based on LaMDA that it already had ready, which would leave Microsoft once again with no advantage over Google when it comes to internet search.
The next problem Google would have to solve is protecting its core business: the ads it shows in its search engine. If from now on everything is going to revolve around artificial intelligence, we may well be looking at the end of a large share of the web’s content creators, because users would no longer need to visit websites to look for information; the chatbot would give them the answer. Even so, if any company knows how to make money from search, it’s Google.
Salesforce.com, Inc. (CRM)
Salesforce has built AI into its customer relationship management (CRM) software platform, enabling businesses to improve customer service, sales automation and data analysis.
Amazon
Amazon has been using AI to make its operations more efficient and to develop new products and services, such as its virtual assistant Alexa. Amazon also offers a machine learning platform for developers called Amazon SageMaker. Amazon will manage to harness artificial intelligence to grow its main businesses, not just its e-commerce store.
Microsoft
Microsoft is investing heavily in AI, with projects ranging from customer service chatbots to data analytics and machine learning solutions. The company has also developed AI tools for developers, such as Azure Machine Learning, and, as we mentioned earlier, it will now try to compete with Google by adding ChatGPT to its Bing search engine.
IBM
IBM has been at the forefront of AI for decades and has developed some of the most advanced AI technologies in the world, such as Watson, a comprehensive AI-based platform with all kinds of tools. IBM also offers AI services for businesses, such as IBM Watson Assistant and IBM Watson Studio.
NVIDIA
NVIDIA is a technology company specialising in the design of graphics processing units (GPUs), which are an essential part of AI infrastructure. The company is investing heavily in developing hardware and software for AI and has achieved great success in the AI industry in recent years. This company will no doubt find the right formula to boost its sales thanks to AI.
OpenAI
OpenAI, the company behind ChatGPT, is an AI research organisation working on a wide range of AI projects, from natural language processing to robotics. This organisation, founded by Elon Musk and other technology leaders and now backed by Microsoft, is the one that fired the first shot and forced the other companies to pull their aces out of their sleeves.
Bear in mind that this list is not exhaustive and that there are many other companies developing AI around the world. There are also many emerging AI companies that could be of interest to investors looking for growth opportunities.
Promising artificial intelligence companies for investors
Among the other emerging artificial intelligence (AI) companies that could interest investors looking for opportunities in growth companies, these are some that might be worth a look as investments.
- UiPath: a robotic process automation (RPA) company that uses AI to automate business tasks and processes. UiPath has grown rapidly in recent years and recently became a publicly listed company, given investors’ interest in owning a piece of it.
- CognitiveScale: an AI company focused on building AI solutions for businesses. CognitiveScale has developed an AI platform for business process automation and data analysis.
- Appen: a data labelling company that uses AI to help businesses improve the quality of their data. Appen has been a key player in the AI industry for many years and has seen strong growth recently.
- Suki AI: an AI company that has developed a voice-based virtual assistant platform for doctors and other healthcare professionals. The platform uses AI to automate administrative tasks and improve efficiency.
- DataRobot: a machine learning company that offers a platform for businesses to develop machine learning and data analysis models. DataRobot has grown rapidly in recent years and has raised a significant amount of investment funding.
See also: Investing in mutual funds, an investment alternative
As we said earlier, do your own analysis of these companies before making any decision about investing in them, and remember that at the pace all this innovation is moving, nothing is certain when it comes to investing. A lot can happen, and in fact, we’re expecting it to.
See also: The most profitable investments during a crisis or high inflation
Featured image: Martijn Boer, Public domain, via Wikimedia Commons.
