A robot plays the piano at Feitian Conference, a cloud computing and artificial intelligence conference in China, October 19, 2021. While China revises its tech rulebook, the European Union is developing its own regulatory framework to curb artificial intelligence but has not yet crossed the finish line.
Stern | AFP | Getty Images
In 2023, the AI craze hits Wall Street.
This madness started last November, when OpenAI launched its now-infamous Large Language Model (LLM), ChatGPT. The tool touted some impressive features and sparked an artificial intelligence race with rival Google, announcing its own chat box — Bard AI — just a few months later.
But enthusiasm goes even further.Investors are flocking to stocks that offer ample AI exposure, such as C3.AIchip maker Nvidiaand even teslaThe impressive growth came despite a tight overall macroeconomic environment.
Like “blockchain” and “Internet” before it, artificial intelligence has become a buzzword for businesses wanting a piece of the action.
Now, some with little historical connection to artificial intelligence are touting the technology on conference calls with analysts and investors.
supermarket chain hook up Touts itself as having “a long history as a technology leader” Chief executive Rodney McMullen sees this as one reason the company is poised to capitalize on the rise of artificial intelligence. McMullen specifically pointed to how AI can help streamline customer surveys and help Kroger take data faster and apply it in stores.
Shares in the supermarket giant have risen just over 4% since the start of the year.
“We also believe that robust, accurate and diverse first-party data is critical to maximizing the impact of innovation, data science and artificial intelligence,” McMullen told investors on the company’s June 15 earnings call. critical.” “As a result, Kroger is well-positioned to successfully adopt these innovations and deliver a better customer and employee experience.”
Similarly, Tyson FoodsThe world’s second-largest chicken, beef and pork producer believes it can benefit from a surge in investment and excitement over artificial intelligence. Chief executive Donnie King, however, did not specify how artificial intelligence will affect the company’s future or what specific applications the technology will have in Tyson’s food business.
Shares of Tyson Foods are down more than 20% from January.
“…we continue to build our digital capabilities, operate at scale through digitized standard operating procedures, and leverage data, automation and artificial intelligence for decision-making,” King said on the company’s May 8 earnings call. tell investors.
For Heating, Ventilation, and Air Conditioning (HVAC) Equipment Manufacturers Johnson ControlsIt proposes that AI can help companies navigate volatile macroeconomic environments. Chief Executive George Oliver did not elaborate last month on how AI will play a role in the company’s future, other than to mention AI as a potentially useful tool when asked about the drop in orders.
Shares rose 2.2 percent from January.
Oliver told investors on the company’s May 5 earnings call: “…no matter what (economic) cycle we end up going through, AI will continue to allow us to scale our services.”
The prospect of artificial intelligence drove stocks higher as Wall Street entered the second half of the year. By comparison, the tech-heavy Nasdaq Composite has risen about 16% from January.
However, despite AI’s potential to upend numerous industries and potentially automate hundreds of millions of jobs, over time investors will ultimately decide who are the legitimate beneficiaries and who are merely trying to capitalize on the hype.