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Investors beware: there’s plenty of buzz around artificial intelligence (AI) as more and more companies say they’re using it. In some cases, companies are using older data analytics tools and labeling it as AI for a public relations boost. But identifying companies actually getting material revenue growth from AI can be tricky.
AI uses computer algorithms to replicate the human ability to learn and make predictions. AI software needs computing power to find patterns and make inferences from large quantities of data. The two most common types of AI tools are called “machine learning” and “deep learning networks.”
Nvidia (NVDA) is one company that can lay claim to AI-driven growth. Internet and tech companies buy its processors for cloud computing. Nvidia’s AI chips also are helping guide some self-driving cars in early trials.
Startups are racing to build AI chips for data centers, robotics, smartphones, drones and other devices. Tech giants Apple (AAPL), Google-parent Alphabet (GOOGL), Facebook (FB) and Microsoft (MSFT) have forged ahead in applying AI software to speech recognition, internet search, and classifying images. Amazon.com’s AI prowess spans cloud-computing services and voice-activated home digital assistants.
Then, there are tech companies that embed AI tools in their own products to make them better. Those include video streamer Netflix (NFLX), payment processor PayPal (PYPL), Salesforce.com (CRM) and Facebook.
Customers of tech companies — spanning banks and finance, health care, energy, retail, agriculture and other sectors — are expected to increase spending on AI to get productivity gains or a strategic edge on rivals.
Bookmark this page to stay on top of the latest AI trends and developments.
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