We recently published a list of Stay Ahead: 9 Key AI News Updates You Need to See. In this article, we are going to take a look at where NICE Ltd. (NASDAQ:NICE) stands against other key AI news updates you need to see.
A very adaptable tool, generative artificial intelligence has been used in various fields. As a result, it could develop into a general-purpose technology that can evolve into a machine capable of carrying out any task that a human can. Given that the generative AI market is growing at a compound annual growth rate of 34.20%, according to Research and Markets, it has sparked an arms race between companies and, most recently, between countries.
A week into office, President Donald Trump rolled back Biden-era artificial intelligence safety and security measures. The rollback is part of the new administration’s bid to speed and accelerate generative AI development as the US seeks to win the AI race against China.
To maintain global leadership in AI technology, “we must develop AI systems that are free from ideological bias or engineered social agendas,” Trump’s order says.
Trump’s Executive Order overturned President Joe Biden’s 2023 policy, which required AI developers to perform safety testing and report findings to the government prior to releasing systems that could endanger public health, national security, or the economy.
According to the Trump administration, the Biden policy “established unnecessarily burdensome requirements for companies developing and deploying AI that would stifle private sector innovation and threaten American technological leadership.”
Additionally, the Biden executive order demanded that deepfakes be watermarked, that government agencies establish AI testing standards that consider national security threats, and that federal law enforcement and intellectual property regulators change how copyrighted works are used in AI training. The previous administration “hampered the private sector’s ability to innovate in AI by imposing government control over AI development and deployment,” according to Trump’s executive order.
The removal of the safety and security measures is being portrayed as a floodgate, opening for AI development, which could hasten advancements in the still-emerging field but also present risks. Nevertheless, the Consumer Federation of America and Mozilla have written a letter urging the White House to maintain “key rules” for transparency and testing in artificial intelligence.
“Without guardrails like testing and transparency on an AI system before it’s used — guardrails so basic that any engineer should be ashamed to release a product without them — seniors, veterans, and consumers will have their benefits improperly altered and their health endangered,” they wrote. “We call on you to keep key rules about testing and transparency for safety- and rights-impacting AI in place.”
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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A data scientist sitting in front of a monitor to review the performance of AI-driven digital business solutions.
NICE Ltd. (NASDAQ:NICE)
Number of Hedge Fund Holders: 24
NICE Ltd. (NASDAQ:NICE) is a technology company that provides global cloud platforms for AI-driven digital business solutions. It offers CXone, a native cloud open platform, and Enlightens, an AI engine for the customer engagement market. On January 29th, analysts at DA Davidson reiterated a Buy rating on the stock with a $225 price target. The bullish rating comes amid concerns that the stock is undervalued owing to its strong financial results and robust fundamentals.
Additionally, the analysts touted NICE Ltd.’s (NASDAQ:NICE) commitment to staying ahead of market trends and providing AI-driven digital business solutions. The company has invested in artificial intelligence platform innovation while expanding its Contact Center as a Service Business capabilities. It is developing its platform to provide more sophisticated solutions and broaden its scope beyond its primary CCaaS products. This expansion is anticipated to create new opportunities for client interaction and growth. The investments are already paying off, given that NICE third quarter revenues were up by 15% to $690 million, attributed to strong demand for the company’s AI tools.
Overall, NICE ranks 7th on our list of key AI news updates you need to see. As we acknowledge the growth potential of NICE, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NICE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
