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Artificial intelligence (AI), uses computers to perform tasks that normally require human intelligence with the aid of machine learning and deep learning.
AI is created through machine learning, which involves training a system with huge amounts of data. It then uses the trained system to make inferences about new data it’s never seen.
The simplest example is a system designed to detect objects in images. Images with those objects are provided to the system, which “learns” how to detect those objects in other images. The more objects in images it detects, the more accurate the detection system becomes.
Companies employ artificial intelligence in two main ways. Many tech companies use AI to make their existing operations more powerful such as through high-profile applications, including robotics, self-driving cars, and virtual assistants. Google, a subsidiary of Alphabet (GOOGL -0.53%), (GOOG -0.65%), uses AI to filter out spam for Gmail users. Amazon (AMZN 1.11%) uses AI to recommend products to customers, while Netflix (NFLX -0.17%) uses AI to guide content creation and recommendations.
More recently, OpenAI’s ChatGPT has shown how far “generative AI” a division of artificial intelligence that is capable of generating texts, images, sounds, and ideas, has come. The potential of such large language models is enormous.
Some companies also profit directly from AI by selling hardware, software, services, or expertise that the technology needs. These are true artificial intelligence stocks and include those companies listed and described below:
AI is a growth business
Total spending on AI systems is forecast to reach $97.9 billion in 2023. With the AI market already large and still growing quickly, plenty of companies can profit from AI. Although picking stocks in a growth industry comes with a lot of uncertainty, these top AI stocks are all worth considering.