AI: Shaping Industries and Driving Innovation

Artificial intelligence (AI) is rapidly transforming diverse industries, from healthcare and website design to cybersecurity. Companies are leveraging both traditional AI and generative models to improve diagnostics, enhance customer experiences, and boost business efficiency. While AI presents immense opportunities, it also introduces new challenges, particularly in safeguarding sensitive data.

AI Insights from Industry Leaders

At the CNBC CFO Council Summit on December 4, business leaders from leading companies shared their perspectives on how AI is being integrated into their operations. Nathan Gooden, Squarespace’s chief financial officer, Zoetis’s Wetteny Joseph, and Varonis’s Guy Melamed discussed the ways AI is improving their businesses, customer experiences, and addressing emerging challenges. They also explored the evolving role of generative AI and its potential impact on their respective industries.

Wetteny Joseph highlighted how AI is revolutionizing animal health. He discussed the integration of traditional AI in diagnostic platforms for animals, such as a system that analyzes slide images to identify health issues. This technology has the potential to expand into human healthcare in the future. Nathan Gooden emphasized the long-standing use of machine learning in Squarespace’s platform and the incorporation of generative AI to simplify the website design process for customers. Guy Melamed discussed the dual impact of AI: enhancing customer protection while also presenting risks, such as exposing sensitive data through AI tools like Copilot. His company, Varonis, focuses on securing data and preventing unauthorized access through these AI systems.

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Alphabet Inc. (NASDAQ:GOOGL) and the Rise of AI

Number of Hedge Fund Holders: 202

Alphabet Inc. (NASDAQ:GOOGL), one of the world’s leading tech companies, is making significant strides in the AI market with its Gemini AI model and TPU chips. According to an NBC News report on December 5, Waymo, Alphabet’s autonomous driving unit, is expanding its robotaxi service to Miami.

This expansion will start with human-supervised testing in 2025 and rider access via the Waymo One app in 2026. This move reflects Waymo’s progress in operating autonomous vehicles in challenging weather conditions, building on earlier Miami tests in 2019. Initially, operations will cover parts of the Miami metropolitan area, home to over 6 million people.

Overall, GOOGL ranks 4th on our list of the AI stocks that investors probably missed. While we acknowledge the potential of GOOGL 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 GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.