In this article, we discuss the 20 AI news items that broke the internet this month.
AI is transforming industries and reshaping the world by enhancing efficiency, driving innovation, and opening up new economic opportunities. A recent McKinsey report estimates that AI could add up to $4.4 trillion annually to the global economy by 2030. The rapid growth of AI technologies — especially generative AI — has enabled organizations to streamline processes, automate complex tasks, and develop personalized services. In healthcare, AI is revolutionizing diagnosis and treatment. For example, AI-powered diagnostic tools, such as those developed by Google Health, achieve accuracy rates that rival or surpass human doctors in detecting diseases like cancer. These advancements can reduce diagnostic errors and improve patient outcomes. Gartner predicts that by 2025, 50% of healthcare providers will invest in AI-driven technologies to improve patient care, underscoring the potential for massive growth.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.
Financial services are also being transformed by AI. According to a 2023 report from PwC, AI could increase global GDP by up to 14% by 2030, with financial services being a key driver. Banks and fintech companies are leveraging AI to enhance fraud detection, streamline customer service through AI chatbots, and offer personalized investment advice. Manufacturing is another sector experiencing rapid change due to AI. AI-powered robots are automating production lines, reducing human error, and increasing efficiency. According to the International Federation of Robotics (IFR), global sales of industrial robots are expected to reach $31 billion by 2025. These robots, coupled with AI-driven predictive maintenance systems, are lowering downtime and operational costs for manufacturers. Tesla, for instance, uses AI in its Gigafactories to streamline the production of electric vehicles, aiming to achieve greater sustainability and lower manufacturing costs.
The retail industry is embracing AI to optimize supply chains and enhance customer experiences. AI-driven recommendation systems, like those used by Amazon and Alibaba, have significantly improved customer satisfaction by offering personalized shopping experiences. A Forbes report suggests that AI could reduce supply chain forecasting errors by 50%, helping retailers better meet consumer demands. However, as AI adoption grows, so do concerns around job displacement. The World Economic Forum estimates that AI will replace 85 million jobs by 2025 but also create 97 million new roles, particularly in sectors like AI development, data science, and cybersecurity. This transition will require workers to adapt and reskill to remain relevant in the evolving job market.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
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Our Methodology
For this article, we selected the most important AI news by combing through news articles, stock analyses, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
AI News That Broke The Internet This Month
20. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 18
C3.ai, Inc. (NYSE:AI) operates as an enterprise artificial intelligence software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The stock has registered a steep fall in price this month after the firm posted first fiscal quarter earnings and guidance that did not impress investors. However, Thomas Siebel, the CEO of the firm, sought to allay investor concerns, highlighting that the firm had a solid start to the fiscal year, with rising demand for Enterprise AI driving a sixth consecutive quarter of accelerating revenue growth. DA Davidson lowered the price target on C3.ai, Inc. (NYSE:AI) stock to $20 from $30 and kept a Neutral rating on the shares following the results. In an investor note accompanying the price update, the advisory detailed that C3.ai continued to convey a large opportunity ahead of it and was focused on growing total revenue, though the stock also fully reflected the current growth prospects for the company.
19. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 44
Palantir Technologies Inc. (NYSE:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations. The company had an eventful September. After being added to the S&P 500 list, it announced that it had won a $100 million contract from the US army to streamline the AI infrastructure capabilities of the latter. Palantir Technologies Inc. (NYSE:PLTR) chief Peter Thiel also recently filed to sell up to $1 billion worth of Palantir shares, per media reports. Furthermore, the software firm revealed this month that it had signed a multi-year, multi-million-dollar extension of an enterprise deal with energy firm APA Corporation to leverage Palantir AI tech across oil and gas operations.