Why 90% of Companies Are Investing Millions in This
Editor’s note: This article was previously published under the headline, “New Survey Shows Companies Are ‘All In’ on AI”. It has since been updated with new information.
AI has taken the world by storm, becoming the hottest sector on Wall Street, dominating media headlines, and leading conversations.
Bain & Company, one of the world’s largest consulting firms, recently confirmed that firms are all-in on AI through its quarterly executive survey on artificial intelligence.
We recommend going all-in with AI stocks, too.
If most major companies globally are spending millions to deploy new AI applications, AI developers should see their revenues and profits soar. Consequently, their stocks should rise as well.
This is exactly what’s happening now.
Survey Results Indicate a Lasting AI Takeover
Bain & Co. found that across America, ~90% of companies surveyed are developing, piloting or have already deployed generative AI in some capacity. And they’re spending millions to do it.
Smaller firms are spending about $5 million annually on generative artificial intelligence. Larger firms are investing up to $50 million per year.
Those are some big numbers. And considering that 60% of companies surveyed see generative AI as a top priority over the next two years, they’ll likely stay big or continue to grow.
Currently, the top use cases for generative AI are in areas like sales, software development, marketing and customer service. That is where artificial intelligence is adding immediate value.
In fact, more than 80% of companies surveyed by Bain said that generative AI’s utility is meeting or exceeding expectations in each of those categories.
In other words, the AI software boom is here. It will only grow in the coming years. And AI-related sales, marketing, code development and customer service software is proving most valuable.
That means it’s time to buy those AI software stocks.
The Final Word
These are, after all, some of the hottest stocks in the market right now.
Just look at the world of AI-powered code development software. GitLab (GTLB) provides tools to help computer scientists write and edit their code. Traditional website makers like Wix.com(WIX) and GoDaddy (GDDY) are creating new AI software to help people make websites.
And these stocks have been on fire. WIX, GDDY and GTLB stocks are all up about 100% since early May 2023.
The same goes for AI-related marketing and customer service stocks.
AppLovin (APP) is a mobile app advertising firm that has created new AI tools to help app developers monetize their apps. And Zenvia (ZENV) is pioneering artificial intelligence in the world of customer service.
Both stocks are up about 220% over the past year.
The AI software boom is here. With 60% of companies prioritizing generative AI over the next two years, you can still join the trend.
While it may be too late to buy ZENV or GDDY stock, many other AI sales, marketing, coding, and customer service software stocks deserve your attention now.
Learn about our recommended plays for this software boom.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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