AI will be transformative for many industries because the technology allows companies to both save a great deal of money and generate much more revenue.
On the savings front, AI can cheaply do many human tasks. And unlike the machines invented in the past, AI can replace some of the most costly human laborers. For example, it can be used instead of doctors, IT workers, and pharmaceutical researchers in certain circumstances.
When generating revenue, AI enables new products to be developed more quickly and improves customers’ experiences. It also allows firms to determine which products best suit each customer, enabling companies to offer new, highly profitable services. All of these deliverables can greatly increase companies’ top and bottom lines.
Healthcare, autos, and IT are three industries poised to benefit the most from AI. Several pioneering firms in these sectors are already extensively using AI, and as other companies emulate them, multiple sectors will be completely transformed.
Healthcare
Diagnosing patients more effectively than doctors and standard tools seems to be a core capability of AI. Using AI, IBM’s (NYSE:IBM) supercomputer was able to produce the correct prognosis for a patient with a rare case of leukemia, a case that stumped doctors. Meanwhile, iCAD (NASDAQ:ICAD) uses AI to diagnose breast cancer significantly more effectively than standard tools. And according to Forbes, “AI can already analyze X-rays, NMR images and so on quickly and accurately.”
On the drug testing front, Unlearn utilizes AI to develop “e digital twins of people” that enable clinical trials to be completed faster, and Schrodinger (NASDAQ:SDGR) uses the technology to determine which molecules are most likely to become successful drugs, greatly speeding up the drug discovery process.
More mundane tasks in the healthcare sector that can be accomplished using AI include examining tests like X-rays and analyzing blood pressure readings.
Autos
Siemens Mobility (OTCMKTS:SIEGY) has created an AI-based tool that automatically “alters the traffic lights and controls the traffic based on real-time road congestion.”
Of course, many vehicles utilize advanced driver assistance systems (ADAS) that are based on AI, and autonomous vehicles are becoming a reality. In multiple large cities in China, for example, Baidu (NASDAQ:BIDU) has already deployed self-driving taxis, and it says they provide an average of almost 15 rides per day. In the U.S., General Motors (NYSE:GM) Cruise unit has deployed driverless taxis in San Francisco and has applied to roll them out in other areas in California.
And Aurora Innovation (NASDAQ:AUR) has launched an expansive pilot program that is testing autonomous trucks in Texas. The company is aiming to commercialize its autonomous software for trucks by the end of next year.
Information Technology
ServiceNow (NYSE:NOW), which automates IT tasks, is already enabling its customers to perform many functions using AI. Among these are alerting firms to “critical issues,” finding “trends,” and providing the correct information to customer service. Similarly, Dynatrace’s (NYSE:DT) AI enables businesses to automate their IT operations, and update and launch new software.
On the IT security front, Check Point (NASDAQ:CHKP) is using AI for many tasks, including finding “dangerous programs” and quickly analyzing “thousands” of aspects of suspicious programs. Finally, BlackBerry’s (NYSE:BB) Cylance system “has trained on billions of diverse threat data sets over several years of real-world operation,” giving it the ability to quickly identify and react to threats.
As of the date of publication, Larry Ramer owned shares of ICAD, AUR, SDGR, and BB. He may purchase shares of Eisai during the week of April 10. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
