Data Driven Investor: How Artificial Intelligence is Transforming the World
The phrase artificial intelligence (AI) has been a buzzword for traders this year. Companies talking up their AI plans have seen shares jump. Companies involved in AI more directly have been the big market winners.
But what does it all actually mean? The sudden interest in artificial intelligence comes from the fact that it can transform and improve nearly every industry today. That could lead a productivity boom similar to the one in the 1990s as the internet rolled out.
Today’s AI isn’t fully intelligent. Rather, it’s known as generative AI. It takes prompts given and follows the most likely paths.
Companies like privately-held Instacart have used this type of AI over the years to improve the customer experience. That includes offering personalized as, and assisting customers with alternative items. Technologies like generative AI can be seen in every online bot that can answer basic questions… and eventually connect you to a human if needed.
Larger retailers, such as Walmart (WMT) have been able to use AI to improve inventory management. That’s helped reduce issues at the company when disruptions in the supply chain occur. And optimizing product availability and inventory have helped improve customer satisfaction.
Those are just some of the changes AI is adding in the retail space. Small changes over time can snowball into billions of dollars in added value. Multiplied throughout the economy it’s clear that we’re still just scratching the surface with AI’s potential power.