Category Archives: Artificial Intelligence
1 Artificial Intelligence (AI) Stock I Wouldn’t Touch With a 10-Foot Pole – The Motley Fool
Since ChatGPT showed up on the scene, it seems like every stock associated with artificial intelligence (AI) in some form has attracted buyers. Indeed, artificial intelligence is changing the face of the tech industry, and some companies will likely experience massive gains as the technology changes the way we live.
However, this does not mean every AI stock is going to deliver outsized returns. In fact, some stocks should arguably be avoided, including enterprise AI software company C3.ai (AI -4.20%). Here's why I'm keeping it off my buy list and encouraging others to do the same.
If you take an overhead view of C3.ai, you can understand why AI investors like this stock. The company develops and sells software applications powered by AI. It also places considerable emphasis on generative AI applications.
Through this technology, it has attracted a diverse client base that includes companies as varied as Microsoft, RTX, and Baker Hughes as it tackles various business-related challenges through AI.
However, C3.ai's revenue base appears to be excessively dependent on specific companies. It currently generates around one-third of its revenue from Baker Hughes. That agreement ends in fiscal 2025, and since it is unknown whether Baker Hughes will renew the deal, C3.ai faces significant uncertainty.
Furthermore, the company's propensity to change its name calls its mission into question. Its original name at its founding in 2009 was C3 LLC. It became C3 Energy in 2013, and in 2016, when the Internet of Things (IoT) gained more attention, it changed its name to C3 IoT. Three years later, it rebranded under its present name, C3.ai, before launching its initial public offering (IPO) the following year. Given such changes, one might question how committed the company is to the technology.
Also, given the state of its financials, one might wonder whether it has a realistic path to profitability. In the first two quarters of fiscal 2024 (ended Oct. 31), revenue came in at $146 million, a yearly increase of about 14%.
Unfortunately, a near doubling of subscription costs more than wiped out the benefits of the higher revenue. Thanks to higher interest income, the net loss in the first half of 2024 fell to $134 million, a modest improvement from the $141 million lost during the same time frame in fiscal 2023.
Admittedly, its $762 million should keep the company in business for the foreseeable future, possibly without more debt or further stock dilution. Nonetheless, given the marginal improvement in net losses, one has to wonder if C3.ai can grow enough to become profitable.
Also, its stock has struggled in the second half of 2023. Although it rose by around 160% over the last year, that includes a decline of nearly 30% in the previous six months. And its price-to-sales (P/S) ratio of more than 11 makes it a relatively expensive stock. Such a valuation could limit the upside without a dramatic improvement in its business.
Despite C3.ai showing outward appearances of a promising AI company, a deeper look at the company indicates some troubling problems that should make investors think twice about buying in. Aside from its frequent name changes, the company seems incapable of generating the growth it needs to remain profitable. Moreover, the recent stock price behavior and valuation indicate the stock may have peaked.
AI is likely going to generate considerable returns for investors over time. Nonetheless, investors may want to ignore C3.ai in favor of profitable companies that have consistently focused on artificial intelligence.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends C3.ai and RTX. The Motley Fool has a disclosure policy.
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1 Artificial Intelligence (AI) Stock I Wouldn't Touch With a 10-Foot Pole - The Motley Fool
DOD Increases AI Capacity Through Strategy, Alignment > U.S – Department of Defense
The Defense Department is making leaps when it comes to fielding cutting edge technologies, a senior Pentagon policy official said today.
Michael C. Horowitz, deputy assistant secretary of defense for force development and emerging capabilities, said key organizational and strategy updates have resulted in DOD's improved ability to effectively field new tactics and technologies especially when it comes to artificial intelligence.
"If you imagine, essentially, a continuum of activities from science and technology investments all the way to fielding capabilities, this administration within the Department of Defense has launched new initiative at each place, essentially, in the continuum," he said during an AI policy discussion hosted by the Center for Strategic and International Studies in Washington, D.C.
Horowitz cited the creation of the Chief Digital and Artificial Intelligence Office, responsible for the departmentwide adoption of data. He also cited recent strategy updates aimed at aligning AI adoption with broader defense strategy.
In November, the DOD released its strategy to accelerate the adoption of advanced artificial intelligence capabilities to ensure U.S. warfighters maintain decision superiority on the battlefield for years to come.
The 2023 Data, Analytics and Artificial Intelligence Adoption Strategy, which was developed by the Chief Digital and AI Office, builds upon and supersedes previous strategies. The 2018 DOD AI Strategy and revised DOD Data Strategy, published in 2020, laid the groundwork for the department's approach to fielding AI-enabled capabilities.
Horowitz also cited DOD investments in research, development, test and evaluation, and new initiatives to speed up experimentation within the department.
"All across the waterfront. we've launched initiatives designed to improve our adoption capacity, and I think we're really starting to see them pay off," Horowitz said.
When it comes to the adoption of AI and autonomous systems, Horowitz said that DOD remains laser focused on ensuring trust and confidence in the technology. He added that the department also maintains its commitment to international humanitarian law as it applies to the technology.
Last year, the Defense Department updated a 2012 directive governing the responsible development of autonomous weapon systems to the standards aligned with the advances in artificial intelligence.
The U.S. has also introduced a political declaration on the responsible military use of artificial intelligence, which further seeks to codify norms for the responsible use of the technology.
Horowitz said 51 countries have signed on to the political declaration, reflecting U.S. leadership at a critical time in the global adoption of AI.
"I think that there's a recognition that the sorts of norms we're trying to promote are things that all countries should be able to get behind," he said. "They include things like a commitment to international humanitarian law. They include appropriate testing and evaluation for systems," he said.
"They include lots of, I would say, good governance mechanisms of the sort that we flesh out in detail in Department of Defense policy," Horowitz said.
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DOD Increases AI Capacity Through Strategy, Alignment > U.S - Department of Defense
Artificial Intelligence (AI) is no longer just a science-fiction concept. – Medium
Artificial Intelligence (AI) is no longer just a science-fiction concept. The 2024 and beyond are poised to be dominated by AI, significantly impacting most industries. We must be prepared for these changes.
Its rapidly weaving into the fabric of our everyday lives, transforming industries, redefining work, and influencing how we interact with the world. This increased integration of AI is not without its challenges, but the potential benefits are undeniable.
From Automation to Augmentation:
One of the most significant aspects of AI integration is its ability to automate tasks. AI algorithms are taking over Repetitive, data-driven processes, freeing human workers to focus on more strategic and creative endeavors. Imagine assembly lines where robots collaborate with humans or customer service centers powered by AI chatbots that handle routine inquiries, allowing human agents to tackle complex issues.
Beyond mere automation, AI is also augmenting human capabilities. For example,
Challenges and Opportunities
The increased integration of AI is not without its challenges. Concerns about job displacement, bias in algorithms, and the ethical implications of AI need to be addressed. However, these challenges also present opportunities. By investing in education and retraining programs, we can ensure that workers have the skills needed to thrive in the AI-powered economy. By developing ethical guidelines and regulations, we can ensure that AI is used responsibly and for the benefit of all.
The Future of AI Integration
The future of AI integration is bright. We can expect even deeper integration into our lives as AI technology advances. Imagine smart homes anticipating our needs, intelligent cities optimizing traffic flow and energy consumption, and personalized education systems adapting to each students learning style.
The increased integration of AI is not something to fear but rather an opportunity to embrace. By working together, we can ensure that AI is used to create a better future for everyone.
In conclusion, the increased integration of AI is a transformative force shaping our world profoundly. While challenges exist, the potential benefits are vast. By embracing AI responsibly and thoughtfully, we can unlock a future of greater efficiency, productivity, and human potential.
Lets be prepared and make this world secure and beautiful with AI.
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Artificial Intelligence (AI) is no longer just a science-fiction concept. - Medium
First Georgia bills dropped targeting artificial intelligence – 11Alive.com WXIA
ATLANTA A Georgia lawmaker introduced two bills this week that would try to put some curbs on artificial intelligence.
Artificial intelligence is already making its mark on college campuses, where some students dont mind admitting that its mighty handy for writing term papers. This was in June:
"Yep! It would give me a whole term paper in five minutes," gushed a Savannah State University student 11Alive interviewed in June. She declined to give her full name, adding, "Everyone cheats in college."
Artificial intelligence also shouldnt be used to get too deep into the backgrounds of people seeking, say, health insurance says David Schweidel at Emory.
"Maybe they're not discriminating based on the medical diagnosis. Maybe they're discriminating based on search engine history. We dont want that," said Schweidel of the Goizueta Business School.
State Rep. Mandisha Thomas (D-South Fulton) said some of her neighbors are convinced companies using AI are holding them back. Thomas has introduced two bills in the state House. They would make it illegal to use AI to discriminate against people and to prevent health or public assistance providers from making decisions based on AI.
"We dont want AI to have the last word when a customer or participant in a program is on public services. We dont want them to have the last word. We want a human to have the last word," Thomas told 11Alive.
"These are reasonable steps. What they're effectively saying is, we dont want machines that are black boxes making important decisions," Schweidel said.
Schweidel explained these bills are the first of what he expects to be a flurry of legislation as lawmakers hear more from constituents about what worries them about AI.
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First Georgia bills dropped targeting artificial intelligence - 11Alive.com WXIA
Predictions of AI-powered models strictly trial-specific, have no generalisability: Study – HT Tech
AI-powered prediction models made accurate predictions within the trial they were developed in, but gave "random predictions" outside of it, according to a new research. Researchers said the study showed that generalisations of predictions of artificial intelligence-based models across different study centres cannot be ensured at the moment and that these models were "highly context-dependent". Results of the study have been published in the journal Science.
Pooling data from across trials too did not help matters, the team found.
The team of researchers, including those from the universities of Cologne (Germany) and Yale (US), were testing the accuracy of AI-driven models in predicting the response of schizophrenic patients to antipsychotic medication across several independent clinical trials.
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The current study pertained to the field of precision psychiatry, which makes use of data-related models for targeted therapies and suitable medications for individuals.
"Our goal is to use novel models from the field of AI to treat patients with mental health problems in a more targeted manner," said Joseph Kambeitz, Professor of Biological Psychiatry at the Faculty of Medicine of the University of Cologne and the University Hospital Cologne.
"Although numerous initial studies prove the success of such AI models, a demonstration of the robustness of these models has not yet been made," said Kambeitz, adding that safety was of great importance for everyday clinical use.
"We have strict quality requirements for clinical models and we also have to ensure that models in different contexts provide good predictions.
"The models should provide equally good predictions, whether they are used in a hospital in the USA, Germany or Chile," said Kambeitz.
That these AI models have highly limited generalisability was an important signal for clinical practice and shows that further research is needed to actually improve psychiatric care, the researchers said.
The team is hoping to overcome these obstacles and is currently working on examining large patient groups and data sets in order to improve the accuracy of AI models, they said.
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Predictions of AI-powered models strictly trial-specific, have no generalisability: Study - HT Tech
Missed the Boat on Nvidia? Here Are 2 Artificial Intelligence (AI) Growth Stocks Using Nvidia’s Tech to Reach New … – The Motley Fool
In today's video, I discuss recent updates affecting Nvidia (NVDA -0.20%) and two growth stocks using Nvidia's technology to develop unique artificial intelligence (AI) solutions. Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Jan. 11, 2024. The video was published on Jan. 12, 2024.
Jose Najarro has positions in Cerence and Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Cerence. The Motley Fool has a disclosure policy.Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
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Missed the Boat on Nvidia? Here Are 2 Artificial Intelligence (AI) Growth Stocks Using Nvidia's Tech to Reach New ... - The Motley Fool
AI-powered misinformation is the world’s biggest short-term threat, Davos report says – The Associated Press
LONDON (AP) False and misleading information supercharged with cutting-edge artificial intelligence that threatens to erode democracy and polarize society is the top immediate risk to the global economy, the World Economic Forum said in a report Wednesday.
In its latest Global Risks Report, the organization also said an array of environmental risks pose the biggest threats in the longer term. The report was released ahead of the annual elite gathering of CEOs and world leaders in the Swiss ski resort town of Davos and is based on a survey of nearly 1,500 experts, industry leaders and policymakers.
The report listed misinformation and disinformation as the most severe risk over the next two years, highlighting how rapid advances in technology also are creating new problems or making existing ones worse.
The authors worry that the boom in generative AI chatbots like ChatGPT means that creating sophisticated synthetic content that can be used to manipulate groups of people wont be limited any longer to those with specialized skills.
AI is set to be a hot topic next week at the Davos meetings, which are expected to be attended by tech company bosses including OpenAI CEO Sam Altman, Microsoft CEO Satya Nadella and AI industry players like Metas chief AI scientist, Yann LeCun.
AI-powered misinformation and disinformation is emerging as a risk just as a billions of people in a slew of countries, including large economies like the United States, Britain, Indonesia, India, Mexico, and Pakistan, are set to head to the polls this year and next, the report said.
You can leverage AI to do deepfakes and to really impact large groups, which really drives misinformation, said Carolina Klint, a risk management leader at Marsh, whose parent company Marsh McLennan co-authored the report with Zurich Insurance Group.
Societies could become further polarized as people find it harder to verify facts, she said. Fake information also could be used to fuel questions about the legitimacy of elected governments, which means that democratic processes could be eroded, and it would also drive societal polarization even further, Klint said.
The rise of AI brings a host of other risks, she said. It can empower malicious actors by making it easier to carry out cyberattacks, such as by automating phishing attempts or creating advanced malware.
With AI, you dont need to be the sharpest tool in the shed to be a malicious actor, Klint said.
It can even poison data that is scraped off the internet to train other AI systems, which is incredibly difficult to reverse and could result in further embedding biases into AI models, she said.
The other big global concern for respondents of the risk survey centered around climate change.
Following disinformation and misinformation, extreme weather is the second-most-pressing short-term risk.
In the long term defined as 10 years extreme weather was described as the No. 1 threat, followed by four other environmental-related risks: critical change to Earth systems; biodiversity loss and ecosystem collapse; and natural resource shortages.
We could be pushed past that irreversible climate change tipping point over the next decade as the Earths systems undergo long-term changes, Klint said.
Columbia Joins New York Consortium on Artificial Intelligence – Columbia University
Columbia University will join six other research institutions as part of a plan announced today by New York Governor Kathy Hochul to make New York State a leader in artificial intelligence research and innovation. At the center of this effort, called Empire AI, is the building of a state-of-the art artificial intelligence computing center in upstate New York to promote responsible research and development and to create jobs and other opportunities.
The vision forEmpire AIis to provide the academic research community in New York with a state-of-the-art computational facility that supports cutting-edge research.We are grateful to Governor Hochul for her bold vision to ensure that academic institutions in New York State can remain competitive and forward-looking as this fast-moving technology continues to transform our lives.Columbia is thrilled to be part of this initiative, said Columbia President Minouche Shafik.
In addition to Columbia, Cornell, New York University, Rensselaer Polytechnic Institute, the State University of New York (SUNY), the City University of New York (CUNY), and the Flatiron Institute will govern this consortium. This Empire AI consortium will empower and attract top notch faculty, expand educational opportunities, and give rise to a wave of responsible innovation that will strengthen New Yorks economy and U.S. national security.
Empire AI is exactly thestate-of-the-art computational facility needed now for universities to perform cutting-edge research in AI. Academia can focus on advancing the science underlying AI technology and on ensuring the trustworthiness of the AI systems deployed, said Columbia Executive Vice President for Research Jeannette Wing. We are excited to collaborate with our partners across the state as we embark on this shared opportunity.
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Columbia Joins New York Consortium on Artificial Intelligence - Columbia University
2 Stock-Split Artificial Intelligence (AI) Stocks That Could Skyrocket in 2024 – The Motley Fool
While 2023 saw some artificial intelligence (AI) companies skyrocket, there will be plenty more that see their stocks rise in 2024. One of the critical industries to watch is cloud computing, as these servers are needed for two reasons. First, they can provide the impressive computing power needed to create AI models. Second, these servers can also store the massive amount of data needed to feed these models.
Two of the biggest players in this space are Amazon (AMZN -0.36%) and Alphabet (GOOG 0.40%) (GOOGL 0.40%). While each stock had a strong 2023, the tailwinds provided by their exposure to cloud computing will push them much higher in 2024.
Amazon last split its stock in June 2022, when each share turned into 20. With the stock trading around $145, we're likely a long way off from another stock split, but after a strong year, management may consider it.
While many know Amazon from its e-commerce business, it has become more of a service investment in the past five years. Among these services is Amazon Web Services (AWS), its cloud computing offering. AWS currently has the largest cloud computing market share, controlling an estimated 32% of the market (compared to Alphabet's Google Cloud's 11% and Microsoft Azure's 22%), according to Synergy Research Group.
As of late, AWS has been losing market share, as it hasn't posted great results in 2023. On a currency-neutral basis, AWS' last four quarters of growth rates looked like this:
Data source: Amazon. Table by author.
Compared to its chief rivals, which have consistently posted growth rates above 20% in 2023, AWS is being left behind. But that could change in 2024.
On its Q3 conference call, management discussed the cause of the slowdown: workload optimization. Customers were inefficient in their AWS usage, so instead of risking losing clients to competitors, Amazon stepped in to help optimize spending, which caused growth headwinds.
However, management has evidence that this trend is nearly wrapped up, as they signed deals effective in October that were equivalent to all the deals signed throughout Q3. With new AI workloads coming online, AWS is slated to have a strong 2024.
AWS is one of the most profitable parts of Amazon's business, as it posted 30% operating profit margins in Q3. Should AWS have significant growth in 2023, this will drastically help Amazon's profits, setting the stock up to have a great 2024.
Alphabet also split its stock 20 for one, about the same timeframe as Amazon in July 2022.
While Alphabet's Google Cloud experienced the same slowdowns in 2023, it was not as affected as Amazon. Furthermore, the Google Cloud division is highly leveraged to AI workloads, as over half of generative AI start-ups are Google Cloud customers. With Google Cloud growing at a 22% pace, it's doing quite well.
However, it's not optimized for profits quite yet. Alphabet was a bit late to the cloud computing market, so it hasn't had time to become massively profitable (like AWS). In Q3, Google Cloud posted an operating margin of 3.2% -- a far cry from AWS' 30% margin.
Should Google Cloud achieve the same 30% margin as AWS, it would add 12% to Alphabet's total operating profits. That's a solid gain just by optimizing for profits, but don't expect management to do that in 2024. They see a massive market opportunity, and with Google Cloud growing at a 20% or greater pace throughout 2024, this effect will compound over time.
Even with that boost in its back pocket, Alphabet trades at a reasonable price.
GOOGL PE Ratio (Forward) data by YCharts
With Alphabet having other AI investments, like its groundbreaking Gemini generative AI model, it's set up to have a strong 2024, making it a great candidate for a stock that can crush the market in 2024.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fools board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fools board of directors. Keithen Drury has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy.
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2 Stock-Split Artificial Intelligence (AI) Stocks That Could Skyrocket in 2024 - The Motley Fool
Workers Who Use Artificial Intelligence Are More Likely To Fear That AI May Replace Them – Forbes
jobs, the more likely they fear that automation may replace them.getty
There is a direct correlation between using artificial intelligence and concerns about job security. The more workers leverage generative AI in their jobs, the more likely they fear that automation may replace them. According to a December CNBC SurveyMonkey Workforce survey, 60% of employees who use AI regularly reported they worry about its impact on their jobs. Seventy-two percent of respondents who use the technology recognize that automation significantly increases productivity.
Last year, Goldman Sachs published a report that estimates 300 million jobs could be lost or diminished by this fast-growing technology. The investment bank predicts that the growth in AI will mirror the trajectory of past computer and tech products. Just as the world went from giant mainframe computers to modern-day technology, there will be a similar fast-paced growth of AI reshaping the world.
Automation is already being deployed heavily in the workforce. Seventy-eight percent of C-suite leaders have reported that their company actively uses generative AI today, according to a survey by UKG, a human resources and workforce technology company.
Seven out of 10 C-suite executives say enhancing their use of AI is a central priority for their business, with 49% revealing that their organizations have benefited the mostwith increased financial returnsfrom AI integrations.
AI can streamline workflows, increase efficiency and optimize resources, leading to cost savings and improved quality of work. By offloading mundane and repetitive tasks to AI systems, workers can shift their attention to higher-value activities, resulting in higher employee effectiveness and a more engaging and diverse workplace culture.
AI tools can help with decision-making in the workplace by analyzing vast amounts of data, recognizing patterns and recommending optimal solutions.
With that said, technology lacks human wisdom and discernment, so some level of personal human involvement will always be needed. The purpose of AI in decision-making is not complete automation. Instead, the goal is to help humans make quicker and better decisions through streamlined processes and improved accuracy.
People jump to all or nothing, said Hugo Sarrazin, chief product and technology officer at UKG, The reality is that its going to automate tasks, not automate a full job in most cases.
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Workers Who Use Artificial Intelligence Are More Likely To Fear That AI May Replace Them - Forbes