We recently published a list of Top 10 Trending AI News Updates Investors Should Not Miss. In this article, we are going to take a look at where TELUS Corporation (NYSE:TU) stands against other top trending AI news updates investors should not miss.
Generative artificial intelligence is the technology that promises to revolutionize the financial services sector in ways not seen in years. From altering the way institutions operate to enhancing service delivery, the technology is also making it easy to make decisions that generate long-term value. Nevertheless, its most significant impact is enhancing the analysis of vast amounts of structured and unstructured data, therefore aiding in generating meaningful insights.
The technology is also being relied upon to enhance fraud detection, given its ability to simulate potential attack scenarios and provide solutions to avert them. Generative artificial intelligence also makes it easy for financial institutions to identify vulnerabilities and strengthen defenses. Its use is also transforming various facets of financial services, including credit management, banking operations, and customer service. Significant expansion and operational change are also anticipated.
Likewise, the global market for generative artificial intelligence in financial services is expected to reach record highs of $18.9 billion by 2030. That’s because it is growing at a compound annual growth rate of 38.7%, according to research findings by Research and Markets.
A mix of technological innovations, operational necessities, and evolving customer demands propels the rapid integration of generative AI in the financial services sector. A significant factor contributing to this trend is the growing intricacy of financial markets, necessitating advanced tools to analyze and produce actionable insights from extensive data sets.
“The financial services industry has moved beyond innovation pilots to real-world implementation in 2024-25,” said Pratik Shah, Partner and National Leader – Financial Services, EY India. “Firms are integrating GenAI with core banking systems, including CRM, loan origination, and card management platforms.”
Similarly, the growing demand for personalized financial offerings, such as tailored investment strategies and flexible loan options, is also fuelling the integration of generative AI solutions. Additionally, pressures related to regulatory compliance have further expedited the integration of AI, as companies strive to automate and improve the precision of their compliance processes to adhere to strict legal requirements.
Moreover, the fusion of AI with blockchain and quantum computing technologies is opening avenues for new applications in areas like secure international transactions and quantum-resistant financial modelling. Shifts in consumer behaviour, such as the desire for immediate financial interactions and self-service capabilities, are motivating financial institutions to implement generative AI solutions to fulfil these expectations.
Our Methodology
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 in Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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TELUS Corporation (NYSE:TU)
Number of Hedge Fund Holders: 13
TELUS Corporation (NYSE:TU) is a telecom services company that provides a range of telecommunications and information technology products and services in Canada. On March 18, the company inked a strategic collaboration with Nvidia to develop Canada’s first Sovereign AI factory. The proposed AI factory will enhance the development of AI technologies, increase productivity, and protect data.
The Sovereign AI Factory will use TELUS’ high-speed, ultra-low-latency, fibre-optic network and sustainable data centres to provide AI as a Service (AIaaS). The super secure facility will come equipped with Nvidia’s latest generation AI semiconductors to give Canadian businesses and researchers access to cutting-edge technology. TELUS Corporation (NYSE:TU) also plans to expand operations at its facility in British Columbia and install NVIDIA’s most recent generation of industry-leading graphics processing units (GPUs).
“Canada has made AI a national priority, investing in talent, research and commercialization. The TELUS Sovereign AI Factory now provides the infrastructure for this innovation to scale, empowering Canadian businesses, startups and researchers with access to cutting-edge AI infrastructure to turn their bold ideas into real-world breakthroughs — and now, they don’t have to look beyond our borders to get it,” said Hesham Fahmy, Chief Information Officer at TELUS.
Overall, TU ranks 10th on our list of top trending AI news updates investors should not miss. While we acknowledge the potential of TU as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TU 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.
