Companies across the market are in a frenzy right now. Just like we saw last year with crypto, companies are now furiously looking to implement artificial intelligence (AI) into their products. This week, one of the latest names to announce new AI features is Spotify (NYSE:SPOT). AI may not be new to music, but Spotify’s new DJ feature could make finding new music easier for users — and give a bump to SPOT stock.
Spotify is best-known for pushing the music streaming market into new and unique places. While not the first platform to allow listeners to stream millions of songs instantly, Spotify certainly pushed the popularity of the format to new heights. And it continues to evolve music streaming in unique ways. In recent years, the company has implemented its Wrapped feature to give users a unique end-of-year data round-up. Earlier this week, Spotify also finally jumped onto the crypto bandwagon with “token-enabled playlists” for non-fungible token (NFT) holders. Now, it’s harnessing AI in fresh ways.
This isn’t to say that Spotify is new to AI, though. In fact, Spotify is possibly one of the first companies to bring AI into every day use for millions of people. All of those great music recommendations one gets on the Spotify home page are thanks to the company’s AI model combing through user data. This model has been around for years and has only become more sophisticated as the platform grows in popularity and consumes more data.
Now, with plenty of skin in the AI game, Spotify is looking to grow this feature to capitalize on the new hype.
SPOT Stock Strengthens With DJ AI Feature
Spotify is looking to continue its innovations in order to best strengthen the value of SPOT stock. With AI technology soaring on the back of AI-generated art and chat bots, then, expanding out its AI services is a no-brainer. This is bringing users of the service a new DJ feature.
Simply called DJ, the new AI model is exactly what it sounds like. It’s an AI music guide with which one can listen to the music they know as well as music they may not be familiar with.
The concept is similar to existing recommended and weekly roundup playlists offered by the platform. However, DJ — developed in collaboration with ChatGPT parent OpenAI — provides a new presentation. An AI-generated DJ voice will guide listeners through a personalized, never-ending music set. One can hear old favorites or new releases they may not have yet heard. This DJ can describe to the user what elements of the song they might find pleasing as well as provide facts about the music.
It’s a far more intimate take on technology Spotify already offers. And, it’s available starting today for Canadian and U.S. listeners. Of course, DJ has already caught critique from users calling it a gimmicky way to hop on the AI trend. However, investors will just have to wait and see how a larger rollout will fare. In the meantime, SPOT stock is down just 2% today, continuing what has been a relatively flat February for shares.
On the date of publication, Brenden Rearick did not hold (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.