Top 10 Unlikely AI Stocks with Tremendous Upside Potential

6. Pegasystems Inc. (NASDAQ:PEGA)

Number of Hedge Fund Holders: 28

Pegasystems Inc. (NASDAQ:PEGA) is a technology company that develops, markets, licenses, hosts, and supports enterprise software.  On January 4th, analysts at RBC Capital reiterated an outperform rating on the stock and raised the price target to $115. The upgrade came amidst growing optimism that Pegasystems is one of the software companies well poised to benefit from multiple catalysts in the software sector.

According to analysts, software spending trends are improving, and generative artificial intelligence has the opportunity to drive new innovations. The upgrade also comes on Pegasystems Inc. (NASDAQ:PEGA) unveiling a next-generation version of its market-leading Pega Smart Dispute offering. Coming with new generative AI and automation features, the software helps banks accelerate the resolution of disputes and fraud claims for any type of payment.

The unveiling of the new AI-powered solution paves the way for Pegasystems Inc. (NASDAQ:PEGA) to entrench its software in the financial services sector by helping banks resolve complex disputes and claims.  The company should play a pivotal role in an industry where customers disputed over $11 billion of charges last year according to research firm Datos Insights.