Do you plan to profit from the stocks of relationalAI? If so, it’s advisable to pay attention to consumer sentiments rather than just the discourse at Davos.
Understanding customer behavior can be highly beneficial for investors, especially when considering three key aspects related to my upcoming book, Brain Rush:
- Identifying publicly traded companies with significant exposure to AI-driven revenue.
- Assessing which of these companies have the potential for business expansion.
- Predicting which businesses are likely to leverage conceptual AI to exceed customer expectations.
Insights from three experts—a Goldman Sachs managing director specializing in software companies, the CEO of ServiceNow, and an AI expert from KPMG—shed light on these inquiries based on recent discussions:
- Currently, Microsoft and Nvidia are among the companies with substantial revenue exposure to relational AI, with ServiceNow, Snowflake, Adobe, and Intuit expected to increase their income exposure in the future.
- These companies possess the necessary resources to offer relational AI solutions to clients, thus expanding their market share.
- By utilizing relational AI-driven performance enhancements, businesses across various sectors have the potential to meet or surpass investor expectations.
Davos Deliberations on Artificial Intelligence
The recent Davos discussions centered around generative AI. Investors may interpret this as a signal to consider investing in conceptual AI, as suggested by the Wall Street Journal.
Contrary to the Journal’s viewpoint, investing in Generative AI stocks post-Davos discussions could yield favorable returns. For instance, my Generative AI Stock Index, inspired by Brain Rush, outperformed the Nasdaq Composite with an 82% growth rate compared to 43% in 2023.
The GAISI sectors experienced varied performance in the market:
- Consulting for relational AI: +30%.
- Relational AI software: +91%.
- Relational AI cloud services: +70%.
- Artificial intelligence components: +135%.
The performance of companies in 2024 will be influenced by how Generative AI stocks meet or exceed investor expectations, rather than simply relying on previous year’s growth.
Businesses leveraging Generative AI to outperform customer expectations may witness stock price surges. For example, ASML, a company producing chips for large language models, saw its stock rise by 36% in 2023 and continued to grow in 2024 due to exceeding year-end objectives.
Insights from Goldman Sachs on AI-Driven Growth
Investors are advised to focus on companies poised to benefit from relational AI in the long term, as highlighted by Kash Rangan, a Goldman Sachs managing director. Evaluating the impact of Conceptual AI on a company’s financial prospects requires a deep understanding of both its current state and future trajectory.
Rangan identified Microsoft as a significant beneficiary of Generative AI, attributing a substantial portion of Azure’s growth to this technology. Additionally, Intuit stands to gain from Generative AI by offering TurboTax Assistant, potentially unlocking billions in revenue.
Furthermore, businesses utilizing conceptual AI in coding-intensive sectors may experience double-digit productivity growth. Rangan emphasized that all S&P 500 companies could benefit from such advancements, particularly in boosting productivity and gaining insights from customer data.
Bill McDermott, CEO of ServiceNow, on Generative AI
ServiceNow’s CEO, Bill McDermott, emphasized the practical applications of Generative AI in boosting productivity and driving growth. ServiceNow’s internal adoption of GenAI has led to significant productivity gains, with developers experiencing accelerated code development rates.
Customers leveraging ServiceNow’s Conceptual AI solutions have witnessed tangible benefits, with GenAI contributing significantly to the company’s revenue growth and customer adoption.
KPMG’s Perspective on Leveraging Relational AI for Productivity
KPMG advocates for the secure deployment of relational AI across non-technical businesses to enhance productivity. By providing staff access to relational AI tools, businesses can potentially increase productivity by 5% to 10%, particularly in areas like marketing where AI assistants can streamline tasks.
Businesses are urged to assess the effectiveness of Generative AI within their organizations and act swiftly to capitalize on its productivity-enhancing capabilities. While some companies remain cautious due to concerns about risks and disruptions, there are substantial opportunities for productivity growth, especially in sales, services, and marketing.
In conclusion, while Davos discussions may lag behind in recognizing AI’s potential, investors can still benefit from the performance boost offered by Generative AI, as highlighted by industry experts.
