Is artificial intelligence a tool for the rich countries and the wealthy? Even if it is, Chinese President Xi Jinping warns that it shouldn’t be. At the Group of 20 Summit in Rio de Janeiro, Xi noted that AI shouldn’t be a game of the affluent, calling on more international governance and cooperation on the matter. In a separate meeting in Peru, Xi and Joe Biden also agreed that human beings, and not artificial intelligence, should be making decisions about nuclear weapons, as reported by The White House.
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The call for equitable AI development and responsible decision-making underscores the growing global focus on AI’s impact, and all the latest developments being made in the AI realm. As the global race to advance AI accelerates, one country striving to secure its position in this competitive landscape is Japan. The country is reportedly readying a $65-billion push in microchips and artificial intelligence, as revealed by Japanese Prime Minister Shigeru Ishiba this month. The move comes amid the country’s efforts to reclaim its status as a global tech leader.
News like these underscores how artificial intelligence continues to be a dominant theme in the business world. A Cisco 2024 AI Readiness Report reveals how companies around the world realize that the momentum for AI deployment is building fast, pulling up immense pressure on them in the process. However, only 13% of companies are ready to leverage AI and AI-powered technologies to their full potential. This is a 1-point decline from last year. Even though organizations are doing their best to leverage AI, the ROI is nowhere in the picture for many.
According to an AI consultant Rider Harris, some major reasons for companies failing to reap ROIs are that they probably invested in a bad tool, they weren’t trained enough (or at all), there’s a lack of excitement on the fear that AI may take their job away, or there may even be a lack of resources for employees to adequately make use of or navigate those tools. This is why focusing on aspects such as training employees, getting them excited about the AI tool, and providing adequate resources can go a long way.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
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10. Five9, Inc. (NASDAQ:FIVN)
Number of Hedge Fund Holders: 29
Five9, Inc. (NASDAQ:FIVN) is a technology company providing cloud software solutions for contact centers using AI to improve customer interactions, increase agent productivity, and optimize operational efficiency.
On November 21, Mizuho Securities analyst Siti Panigrahi reiterated a “Buy” rating on Five9, Inc. (NASDAQ:FIVN) with a price target of $55.00. Assessing the company’s performance and potential, the firm believes that Five9’s conservative guidance is a strategic move given that the management expects an acceleration in subscription growth driven by advancements in AI. Record-level turn-ups and AI-driven momentum have helped the company rise from its second-quarter setbacks. Strategic changes to the company’s go-to-market approach are a positive step taken by the company, and the firm is also optimistic about Five9’s AI opportunity. The company generates higher revenue per interaction from its AI software compared to traditional seat-based offerings.
9. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 47
Fortinet, Inc. (NASDAQ: FTNT) provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.
On November 20, Scotiabank analyst Patrick Colville raised the firm’s price target on Fortinet, Inc. (NASDAQ:FTNT) to $110 from $85 and kept an “Outperform” rating on the shares. Following investor day, the firm is optimistic about Fortinet and considers it a “validation moment” for the company’s story. Scotiabank is excited about Fortinet’s upcoming hardware refresh cycle and also anticipates a noteworthy acceleration in Fortinet’s billings growth by 2025. Fortinet’s management has indicated plans to boost investments in go-to-market strategies, which the firm considers as a key to capitalize on the hardware refresh cycle and promote Fortinet’s new AI-reliant security tools like SASE and SecurityOps.
