SPECIAL REPORT The Top 7 Stocks for 2024

3 Trends in Artificial Intelligence to Watch in 2024


  • Three of the most important AI trends in 2024 will involve the technology’s role in enhancing the auto and healthcare sectors, as well as the development of localized AI. 
  • Autos: AI will enable the rapid advancement of autonomous vehicles in China and the launch of autonomous trucks in the U.S.
  • Healthcare: AI will greatly improve many faces of healthcare.
  • Localized AI: The technology will make AI faster and more efficient and useful. 
AI trends - 3 Trends in Artificial Intelligence to Watch in 2024

Source: Sittipong Phokawattana / Shutterstock

Investor’s Business Daily recently provided one of the better definitions of artificial intelligence that I’ve seen. Specifically, it noted that “AI uses computer algorithms to replicate the human ability to learn and make predictions,” while adding that the technology “needs computing power to find patterns and make inferences from large quantities of data.”

By enabling computers to progressively learn, AI is going to make them so much more powerful and helpful to humans. In my opinion, the technology will be a game changer for many sectors, including autos, healthcare, and retailers. Meanwhile, AI, which is now provided to consumers by computers located in far-away data centers, will be utilized directly by our own devices, radically changing how it affects our lives.

Here are three AI trends to watch in 2024.

AI Will Be a Game Changer for the Auto Sector

assortment of cars in a parking lot representing GETR stock.
Source: Shutterstock

In my view, we’ll really start to see AI radically change the auto sector next year. Specifically, autonomous vehicles are going to start proliferating in 2024, although the most rapid advances will likely take place in China and in the U.S. trucking sector.

In China, as I noted in a previous column, Xpeng (NASDAQ:XPEV) has developed an AI-based autonomous navigation system called City Navigation Guided Pilot (NGP). And “in May, Xpeng reported that NGP was able to drive by itself as well as ‘a novice driver,'” while its capabilities will only improve going forward.

The technology is already being utilized by drivers in five Chinese cities and is slated to be rolled out in an additional 20 cities by the end of this month. By the end of this year, it will be available in another 30 cities. What’s more, the company also recently unveiled its “AI Valet Driver,” which learns how to autonomously navigates routes after a human drives them one time.

Meanwhile, Mercedes (OTC:MBGAF) is also offering “highly” automated driving in China, while Baidu (NASDAQ:BIDU) is operating robotaxis in several cities in the country.

And in the U.S., Aurora Innovation (NASDAQ:AUR) is slated to commercially launch its AI-driven product that enables trucks to drive autonomously by the end of next year.

Healthcare Will Be Transformed by AI

Source: Shutterstock

AI is already transforming healthcare, and that trend will only intensify next year. On Oct. 10, for example, Microsoft (NASDAQ:MSFT) unveiled a data analytics tool that’s tailor-made for healthcare entities. The product integrates information from many different sources and enables organizations “to build and run AI models, as well as derive insights” from them.

The software giant also introduced Azure AI Health Insights which it described as “a cognitive service that provides prebuilt models that perform analysis and provide inferences that can be reviewed and used by clinicians and researchers to facilitate patient care.” The most impressive tool within Azure AI Health Insights, called Radiology Insights, provides healthcare providers with treatment recommendations and assesses their decisions, helping to prevent errors.

In general, AI will also enable more “personalized medicine,” better testing for diseases and improved robotic surgery. And as I’ve pointed out in multiple, previous columns, AI is going to enable the drug discovery process to become much faster and more effective.

Among the companies that are using AI to improve the drug discover process are Schrodinger (NASDAQ:SDGR) and Exscientia (NASDAQ:EXAI).

AI Will Become More Localized

At this point, most of the AI utilized by both individuals and companies is provided by far-away data centers. Starting next year, though, we should start to see devices that will enable us to utilize AI on our own.

As Intel (NASDAQ:INTC) CEO Pat Gelsinger recently explained, “As the world moves towards more AI-integrated applications, there’s a market shift towards local inferencing. ” He added that “We are bringing AI to where the data is being generated and used rather than forcing it into the cloud.”

According to TechTarget, localized AI, more commonly referred to as Edge AI, is faster, cheaper, and more secure. Additionally, it enables AI to be utilized to perform more tasks, such as “speech recognition, fingerprint detection, face-ID security, fraud detection and autonomous driving systems.”

Intel and Qualcomm (NASDAQ:QCOM) are among the companies developing the chips that will enable Edge AI. Localization will certainly be one of the most important AI trends in 2024.

On the date of publication, Larry Ramer held long positions in XPEV, INTC, and SDGR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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