What Is Artificial Intelligence?

By Motley Fool Staff – Updated Feb 25, 2025 at 11:10 PM

Key Points

AI uses computers to imitate human judgment, affecting many industries subtly.
Invest in AI as it shapes various sectors like robotics in medicine and automated investing.
Stay informed on AI trends; they play a major role in future investment landscapes.

Artificial intelligence uses machines -- generally, computers -- to mimic human intelligence. Although there are debates about its utility, AI has become common in applications that range from the creation of generative chatbots to the selections displayed in your Netflix queue. Read on to learn more about this rapidly growing field and what it might mean for your investment portfolio.

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Machine Learning

Machine learning is a technique by which artificial intelligence programs are trained.

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Natural Language Processing (NLP)

Natural language processing (NLP) is a branch of AI involving the ability of computers to understand spoken language and text.

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Investing in Tech Stocks

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet, Intuitive Surgical, Microsoft, and Pinterest. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.