SPECIAL REPORT The Top 7 Stocks for 2024

AI for the Future: 3 Stocks Driving Innovative Solutions

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  • Today’s coolest AI tools don’t necessarily have commercial opportunities to offset their high costs.
  • Lemonade (LMND): AI helps this insurance company identify and manage client risk.
  • UiPath (PATH): Cathie Wood’s favorite AI stock helps companies optimize administrative tasks.
  • Symbotic (SYM): Symbotic is revolutionizing warehousing for small and medium businesses with AI robotics.

top AI stocks - AI for the Future: 3 Stocks Driving Innovative Solutions

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While certain AI stock sectors, such as generative text and imagery, have some commercial use, they’ve mostly been relegated to parlor tricks thus far. And, without the profitable commercialization opportunity needed to offset high tech costs, many of today’s “fun” AI stocks won’t be around in a few years.

That’s the reason investors who are searching for top AI stocks should look to the basics. Perhaps boring but needed tasks that AI helps to optimize and streamline. AI will likely be omnipresent in our lives soon, and today’s “nuts and bolts” AI offerings could easily be tomorrow’s Apple (NASDAQ:AAPL).

Lemonade (LMND)

Lemonade stock logo displayed on smartphone laying on top of computer keyboard.
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Ready to get excited about insurance?

OK, probably not. Yet, Lemonade (NYSE:LMND) is one opportunity among innovative AI stocks that’s truly exciting. Until now, insurance offerings have included lengthy and obscure manual calculations that didn’t always accurately predict customer risk. That’s evident today as auto insurance claims surge, leaving legacy insurers holding the bag for poor due diligence.

But Lemonade’s Maya chatbot negates some of that risk, offering customers a friendly and simple alternative when exploring insurance needs. Better yet, it’s underpinned by scores of data that help Maya and Lemonade determine proper price points and risk scores for each customer.

In an age where customers prefer digital engagement for routine business, Lemonade’s customer base is soaring. Customer count grew 12% over the past year and revenue jumped by more than 50%. These stats and increased visibility point to big moments ahead for this top AI stock pick.

UiPath (PATH)

The UiPath (PATH) app is displayed on a smartphone screen.
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UiPath (NYSE:PATH) is on Cathie Wood’s list of top AI stocks, meaning retail investors should take notice. In a September interview, Wood touted UiPath’s AI use in “helping companies automate the most mundane administrative tasks.” It’s not too exciting, but that’s the spot unique AI stocks are. They sit at the intersection of next-gen tech and typical workplace tasks.

UiPath leverages AI and machine learning to help companies streamline workflows by integrating unique proprietary data sets. In effect, it’s like giving OpenAI’s ChatGPT access to your annual credit card statement and asking where you can improve your household budget. But multiply the scale ten-fold (or more) and expand the opportunity to nearly every admin task a company faces. Then you’re closer to the opportunities that UiPath offers.

Speaking of OpenAI, they’re just one of many SaaS tools companies can integrate into their UiPath workflow. Other partnered integrations include Salesforce (NYSE:CRM) and Amazon (NASDAQ:AMZN) Web Services (AWS). These wide-reaching integrations mean UiPath can easily slide itself into most corporate ecosystems while improving enterprise efficiencies.

Symbotic (SYM)

Hand touching digital chatbot for provide access to information and data in online network, robot application and global connection, AI, Artificial intelligence, innovation and technology. AI stocks.
Source: PopTika / Shutterstock.com

Honestly, warehouse management solutions aren’t particularly exciting for average investors. But Symbotic’s (NASDAQ:SYM) AI solutions have big-name corporations racing to partner with them. Symbotic offers AI-enabled warehouse robotics that blue-chips like Walmart (NYSE:WMT) and Target (NYSE:TGT) leverage to cut costs and increase productivity.

Buy Symbotic is about to expand its market reach substantially. Though the firm, thus far, has only been practical for enterprise-level warehousing, the company is developing a tool to help small and medium businesses. The “GreenBox” initiative will target shared warehousing that multiple small businesses use jointly. Again, it may not sound revolutionary, but as one analyst says, “I’ve seen a lot of robotics tech and I’ve never seen anything like it in my life. Compared to what it replaces, it’s like day and night.”

Symbotic just posted its first profitable quarter which, combined with current market penetration and future expansion, bodes well for this AI stock.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.


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