Investors are continually seeking the next significant trend to capitalize on financial opportunities. One of the most notable trends worth monitoring at the moment is the ascent of artificial intelligence (AI).
The impact of AI is poised to be vast and multifaceted, with ramifications across nearly every industry. AI can enhance companies' efficiency and effectiveness and foster the emergence of entirely new industries.
Amid the myriad ways investors can engage with this burgeoning trend, one of the most straightforward approaches involves investing in companies strategically positioning themselves to harness the potential of AI.
Here are two companies that fit this bill.
Image source: Getty Images.
Tesla
Tesla (TSLA -0.25%) is renowned for its electric cars and its pioneering use of disruptive technologies, notably artificial intelligence.
Tesla employs AI to optimize its operations and factories for greater efficiency and effectiveness. For example, it heavily relies on robots to handle tasks such as welding, painting, and assembly, all of which are guided by automated AI-powered software. Furthermore, AI is crucial in planning, forecasting, and supply chain management at the company.
Another significant arena where AI is poised to play a pivotal role for Tesla is autonomous cars. With millions of Tesla vehicles traversing roads globally, the company boasts an extensive dataset to fuel its AI models. This vast data repository empowers the AI software to learn from an incredibly diverse range of complex real-world scenarios, positioning Tesla at the forefront of the race in autonomous vehicles.
Additionally, Tesla is known for its ventures into uncharted territories, with a recent endeavor being the development of humanoid robots. For this ambitious undertaking to succeed, Tesla must harness advanced AI to equip these robots with the ability to perform human-like activities, including interacting with people and comprehending their surroundings. Tesla's experience in autonomous vehicle development is going to be crucial in making a Tesla bot a commercial reality.
AI already plays a significant role in various aspects of Tesla's business and the company is well positioned to reap even more significant benefits as it continues investing in advanced AI. The stock deserves a spot on AI investors' watch lists.
Alphabet
Alphabet (GOOGL 0.69%) (GOOG 0.74%), the parent company of Google, is another crucial player poised to reap substantial benefits from the AI revolution.
At the heart of Alphabet's AI prowess lies Google. With an extensive reservoir of user data, Google has played a pivotal role in driving AI progress. Google's search algorithms have evolved to become more intelligent and personalized, delivering highly relevant results to users. Enhanced relevance translates into improved advertising outcomes for marketers, better user satisfaction, and increased revenue for Google -- an unequivocal win for all parties involved.
Alphabet's cloud computing division, Google Cloud, provides AI-powered services to businesses. These services encompass machine learning, data science, generative AI, and more. In an era when data-driven decision-making reigns supreme, Google Cloud's AI capabilities enable businesses to achieve more with fewer resources. Consequently, customers have good reasons to boost their use of Google Cloud services, propelling it to greater heights in the years ahead.
Furthermore, Alphabet's moonshot venture Waymo has leveraged AI to develop autonomous vehicles. Like Tesla, Waymo must feed vast amounts of data into its AI models to build a fully functional self-driving system. If successful, Waymo's self-driving technology holds the potential to revolutionize the transportation industry, curbing accidents and traffic congestion while enhancing accessibility. Likewise, other ventures like Loon, Verily, and Tidal rely on AI to forge their solutions.
Like Tesla, Alphabet is already a significant user of AI and remains deeply committed to advancing AI technologies further. Additionally, it strategically positions itself to capitalize on forthcoming AI advancements via its involvement in moonshot bets. Investors seeking opportunities in AI-related stocks would be wise to keep a close eye on the company.
