Where will artificial intelligence ultimately take us? That’s anyone’s guess. While chatbots are the current focus of AI, analysts and industry experts say large-language models such as ChatGPT are just the tip of the iceberg when it comes to the future of AI. In the coming years, the technology is expected to disrupt almost all areas of our lives, impacting the way we work, play and use the internet. Already, AI is being integrated into areas ranging from online advertising to banking and military technologies. In most cases, we are not even aware of AI’s presence in our lives. And the influence of AI is only going to grow as companies around the world unveil more and more advanced versions of the technology. With the next big thing in AI on our minds, here are three stocks to watch in 2023.
Next Big Thing in AI: Baidu (BIDU)
Chinese tech giant Baidu (NASDAQ:BIDU) has already entered the global AI arms race. The Beijing-based company that specializes in artificial intelligence has announced plans for a chatbot to rival ChatGPT called “Ernie bot,” which stands for “Enhanced Representation through Knowledge Integration.” The company said it plans to complete its internal testing of Ernie bot this March before releasing it to the general public worldwide.
In addition to having an adorable name, Ernie bot will, according to BIDU, prove to be even more powerful than ChatGPT, potentially raising the stakes in the AI chatbot wars among tech firms. While Ernie bot still has to prove itself to the general populace, news that Baidu is preparing to launch a chatbot was enough to send its stocks soaring to an 11-month high. BIDU stock is now up 22% so far this year.
As China’s premier AI company, Baidu can be expected to remain at the forefront of the AI race for many years to come.
Founded in 2009 by billionaire businessman Thomas Siebel, C3.ai (NYSE:AI) is a relatively small company focused on developing enterprise AI software for multiple uses. C3.ai’s clients include everyone from energy giant Royal Dutch Shell (NYSE:SHEL) to the U.S. Air Force. C3.ai’s technology applies AI to enhance machine learning and the neural networks found in computers. The interesting and exciting thing about C3.ai’s applications is that they can be used across a wide range of industries, from finance to industrials to the military.
The U.S. Air Force currently uses C3.ai’s software to predict the likelihood of engine failure happening in its aircraft and to bolster the maintenance of its increasingly advanced suite of airplanes and helicopters. C3.ai is also highly respected for its ongoing research into AI and its many applications.
In terms of its stock, C3.ai has been surging this year as the hype around AI grows louder. So far this year AI stock is up 95%. The company went public in December 2020.
Meta Platforms (META)
If there’s a dark horse in the AI race, it is Meta Platforms (NASDAQ:META). The company run by Mark Zuckerberg is moving well beyond its Facebook social media platform. In addition to building the metaverse, the company is also hard at work integrating artificial intelligence into its suite of apps and to help drive its online advertising business.
Additionally, Meta has developed the “AI Research SuperCluster,” the fastest AI supercomputer in the world. It seeks to advance language comprehension, computer speech recognition, robotics, and, of course, the metaverse.
Currently, Meta Platforms is integrating AI into its $117 billion digital advertising business, using the technology to bolster its analytics and algorithms to better match advertisements to user behaviors. Meta has also unveiled its own chatbot, called “Galactica,” that is similar to ChatGPT but designed for use by scientists only. While Galactica is still in its infancy and being worked on by the engineers and programmers at Meta, it is clear that Zuckerberg & Co. are taking AI and its potential applications very seriously.
After a bruising downturn in 2022, META stock has been ripping higher in recent months, having risen 44% in 2023.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.