Artificial intelligence has become an integral part of many technology applications and software, from what online ads shoppers see to how spam gets filtered out of our email inboxes.
But some companies aren't just implementing AI into their services; they're actually using AI as a foundation for some of their services.
Investors who are looking for technology companies that are already succeeding in using AI to accelerate their businesses should consider buying CrowdStrike Holdings ( CRWD 3.90% ), Lemonade ( LMND 5.13% ), and Amazon ( AMZN -0.18% ). Read on to find out why these companies might be worth your investment right now.
1. CrowdStrike: AI for security
CrowdStrike is a fast-growing cloud-based cybersecurity company that has woven AI into its applications. The company's Falcon endpoint security platform is powered by AI that runs on the company's proprietary Threat Graph database.
What, exactly, does that mean? It means that Threat Graph acts like a brain that continuously sifts through real-time data and "predicts, investigates and hunts for threats" very quickly to protect a company's data.
Not only is this AI-first company on the cutting edge of technology, but its growth is also accelerating. In the company's second quarter of fiscal 2021 (reported on Aug. 31), CrowdStrike added 1,660 new subscription customers for a total of 13,080 customers -- an 81% increase from the year-ago quarter.
Revenue has skyrocketed as well, with total sales up 70% year over year and CrowdStrike's annual recurring revenue up 70% from the year-ago quarter, reaching $1.34 billion.
So why is now a good time to buy CrowdStrike? Because the company's share price has taken a 6.7% haircut in September (as of this writing), giving new investors a good entry point.
2. Lemonade: AI for insurance
Lemonade is an insurance company that uses artificial intelligence to provide potential customers with low-cost insurance plans and to help existing customers process claims more efficiently.
Think about the last time you had to file a claim with an insurance company. Not a fun phone call, right? The company's AI helps take some of the pain points out of the claim filing process by allowing customers to file many of their claims directly through an AI-powered chatbot.
Not surprisingly, an insurance company that allows you to easily process claims online has been a smashing success. At the end of the second quarter (reported on Aug. 5), Lemonade had amassed 1.2 million customers, an increase of 48% from the year-ago quarter. And Lemonade's in-force premiums (which are insurance plans that are paid for and active) soared 91% year over year.
In the coming months, Lemonade will expand its insurance offerings into the automotive market as well, which will open up even more opportunities for the company to grow its insurance business.
The broader stock market has taken a bit of a hit this month, which has caused Lemonade's stock to slide almost 6% in September, providing savvy investors a chance to pick up shares at a discount.
3. Amazon: AI for e-commerce
Amazon has been knee-deep in AI for years, using the technology to know which products to offer users on its e-commerce platform, power its Echo devices, and make its AWS cloud computing service smarter.
This AI implementation matters because of the company's massive influence across key tech segments. Amazon has about 40% of the retail e-commerce market share in the U.S., and AWS is the No. 1 worldwide cloud infrastructure company with 32% market share.
And Amazon is continuing to use AI in new ways as well, including the company's Just Walk Out technology for grocery stores. This new service uses machine learning and cameras to keep track of which items a shopper puts in their basket (or puts back on the shelf), then charges them automatically as they walk out of the store.
The company just announced that it will start implementing its Just Walk Out technology in a few Whole Foods stores starting next year.
Amazon's stock has been volatile in September (down 1.3% at the moment), giving investors some incentive to expand their position, or start a new one, with this AI-centered tech juggernaut.
The bottom line
Even if the share prices of these stocks bounce back a bit from their September dips, investors would be wise to snatch up Amazon, Lemonade, and CrowdStrike for their long-term potential.
These AI-focused companies have the potential to remain great wealth-building stocks for years to come -- and picking them up now could prove to be a very timely decision.