There are certainly critics out there worried about all the capital flowing into artificial intelligence (AI) projects. However, it's hard to overlook how different companies in various sectors are trying to harness this technology to their benefit.
Investors should try to identify these businesses that are staying ahead of the curve.
With that being said, here are three industry-leading companies that are leveraging AI to strengthen their competitive positions. Investors should add them to their watch lists for further study.
Image source: Getty Images.
1. Netflix
First on this list is streaming pioneer Netflix (NFLX +0.37%). Even before AI was a hot buzzword, this media and entertainment juggernaut was using machine learning and AI capabilities to improve its recommendation algorithm, helping viewers find the right show or movie to watch.
NASDAQ: NFLX
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The company recently touted generative AI, mentioning that creators use this to enhance certain aspects of on-screen visual effects, like to make characters in Happy Gilmore 2 look younger. AI is also being used to improve ad creativity and targeting, a relatively new revenue source for the business.
Netflix's data and tech prowess will give it a leg up on the competition, even though there are people in Hollywood worried about AI advancements.
2. Nike
Nike (NKE 1.14%) shares might be trading 65% below this peak (as of Jan. 28), as it fights to implement a successful turnaround. But this sportswear giant still dominates its industry. It has the resources to focus on technology initiatives.
Nike leverages AI throughout its entire operations, from personalizing shopping recommendations to directing marketing strategies. AI is involved in supply chain and inventory management, too.
NYSE: NKE
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The most exciting initiative, Nike A.I.R. (Athlete Imagined Revolution), launched in April 2024. It's an ongoing design project where the company works with top athletes to come up with futuristic footwear styles, all powered by generative AI.
Nike shareholders are desperately hoping this focus on AI can lead to improving financial results soon.
3. Uber Technologies
In the U.S., Uber Technologies (UBER 2.02%) has about three-fourths of the ride-sharing industry, positioning itself at the top of the market. It's also a leader in delivery services.
Management deserves credit for always thinking about ways to move the business forward. Like Netflix and Nike, Uber is working with AI to improve the experience for its customers. This means better matching riders with drivers, setting pricing based on dynamic trends, and finding the most efficient routes.
NYSE: UBER
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Uber AI Solutions, a quickly growing division, is a new platform that targets enterprise customers. It provides a wide range of AI and data tools and features, created by Uber, to customers in different sectors.
By learning the ways these companies are using AI, investors can have confidence that they aren't resting on their laurels. The best businesses are always finding ways to upgrade their operations.
