Arguably, one of the biggest tech stories of 2023 was the rise of generative AI and ChatGPT. Google the words “generative AI,” and you get 368 million results. Given the massive interest, it’s not surprising that investors want to know what the top AI stock picks of 2024 by sector will be. 

The choices are endless. 

Wedbush Securities analyst Dan Ives believes 2024 will be the “year of AI,” contributing to another big year for tech stocks. Fortune reported the analyst’s Jan. 1 comments to clients:

“‘We believe tech stocks will be up 25% in 2024,’ Ives wrote in a Monday note, adding that ‘the Street and tech world await ‘the Year of AI.’ In a best-case scenario, Ives argued that tech stocks could even see a 35% gain in 2024, leading the Nasdaq Composite to a record 20,000.”

Unlike cryptocurrencies and the blockchain, AI looks ready to deliver all kinds of use cases in 2024 that can be monetized relatively quickly. That’s great news for companies with accelerated AI plans.

Based on use cases that look promising, here are the top AI stock picks in three different sectors: financials, healthcare, and food and beverages.

JPMorgan Chase (JPM) 

JPMorgan Chase (NYSE:JPM) is one of the world’s largest banks. It makes sense that it is deeply involved in AI. 

According to a June 2023 article from Nasdaq.com contributor Merav Ozair, JPMorgan has more than 300 AI use cases. To accommodate these use cases, the bank has invested over $2 billion to allow these apps to run efficiently on its public and private clouds. 

One prime example is IndexGPT, a ChatGPT-based software program that selects customer investments, reducing the need for in-person investment advice for specific clients.

“It’s an A.I. program to select financial securities,” Washington D-C.-based trademark attorney Josh Gerben told CNBC in May 2023. “This sounds to me like they’re trying to put my financial advisor out of business.”

This will take the services a Robo-advisor provides to the next level. Wall Street has been commoditizing investment selection for several years, so it makes sense that JPMorgan would be moving specific clients in that direction.

It’s unlikely that the bank would solely rely on IndexGPT for its high-net-worth investor clients. They expect a little handholding for their hefty advisory fees.

And, of course, the bank uses advanced AI for fraud detection to protect its millions of clients.

AI was built for the financial services sector.

Intuitive Surgical (ISRG)

Intuitive Surgical (NASDAQ:ISRG) has always been a favorite stock of mine. In March 2013, I recommended the maker of da Vinci robotic surgical systems’ stock.

“Intuitive Surgical is a great company that is growing free cash flow at a significant rate. If you own shares already, I’d applaud any pullbacks in its stock. If you don’t own any shares, buy some now and then some later if it drops some more,” I wrote in 2013.

“If you don’t, you’ll be kicking yourself in five years when it’s a $1,000 stock.”

It’s up 465% since, more than double the 200% return of the S&P 500 in the same period. 

As I said back in 2013, Intuitive generates significant free cash flow. It was $775 million, or 115% of its net income that fiscal year. In 2022, it was $958 million, or 71% of net income. Not quite as good. However, it was more than 100% of net income a year before. It’s got plenty. 

How is Intuitive using AI with its surgeon clients?

“We have AI embedded in some of our instruments. An example [is] our stapler, where we can measure, thousands of times a second, certain things about how much the stapler is clamping down on tissue, [so] that we can do our best to ensure that a good staple fire occurs,” Tony Jarc, Intuitive Surgical’s senior director of digital solutions and machine learning told MedTechDive in September 2023.

As the company and its clients become more comfortable with AI, I’m sure it will do plenty more on the AI front.  

Coca-Cola (KO)

Coca-Cola (NYSE:KO) stock has disappointed shareholders over the past five years with a cumulative return of 26.1%, less than one-third the performance of the S&P 500.

And while its stock performance has been less than stellar, it’s not from a lack of trying, especially regarding AI and product innovation. The Atlantic reported last September about the company’s latest flavor (code name Y3000), which was partly created with the assistance of AI. 

“It smells like circus-peanut candies and tastes mostly like Coke,” The Atlantic wrote.  

In November, I discussed how Coke uses AI to create brand buzz. In conjunction with Bain & Company and OpenAI, it launched “Create Real Magic,” a platform that allows creative types to create original artwork from Coke’s archives by combining GPT-4 text and images from text through DALL-E.

The engagement Coca-Cola can generate with consumers through innovative projects is a big reason why the company continues to lead the global soft drink market. 

Selman Careaga, the company’s President, Global Category, told MarketingDive in December that artists posted more than 120,000 pieces of original artwork on the platform. Interestingly, for this Christmas campaign, it created one of its iconic polar bears using generative AI. 

Ultimately, the company uses AI to create better insights into the customer and what resonates with them. As AI matures, so will the projects Coca-Cola rolls out to the public. 

It’s an exciting time for iconic brands like Coke. 

On the date of publication, Will Ashworth 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.