Investors who have followed U.S. stocks over the past few years understand that we are in the midst of the next technological revolution. The explosion in stock prices and profits of AI-related names like NVIDIA (NVDA) has sparked a race for AI innovation. Below, I’ve listed three of the most important AI stories to follow:
Klarna’s AI assistant delivers incredible results
Klarna is a financial technology company that offers a buy now, pay later (BNPL) service, allowing customers to make purchases and pay for them later in installments without interest or fees. Klarna partners with retailers to offer this service at checkout, giving consumers flexible payment options. Klarna also offers a range of financial products and services, including direct payments, financing and banking solutions, aimed at simplifying the shopping experience and providing greater financial flexibility to consumers around the world.
In a February 27th press release Klarna revealed some incredibly positive stats about its OpenAI (and Microsoft (MSFT)) AI powered assistant. Statistics included:
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The AI assistant had2.3 million conversations, or two-thirds of Klarna customer service chats
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It does the equivalent work of 700 full-time agents
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It is tied with human agents when it comes to customer satisfaction score
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It is more precise in resolving races,leading to a 25% drop in repeat requests
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Customers now solve their races in less than 2 minutes compared to 11 minutes previously
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It is available in23 markets, 24/7 and communicates in more than 35 languages
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It is estimated that he can drive a 40 million dollars in profit improvement of Klarna in 2024
(Source: Klarna.com)
The overwhelmingly positive statistics tell me that AI is already at a point where it can completely disrupt the customer service industry for many businesses, increasing customer satisfaction and driving profits. If Klarna can do it, I would expect other fintech companies such as Affirm assets (AFRM), Reached (UPST), And PayPal (PYPL) will follow.
Sora: text-to-video conversion is fast approaching
Sora is a text-to-video AI platform that OpenAI has been teasing. Sora can create complex scenarios featuring numerous characters, distinct movement patterns, and accurate depictions of the subject and environment. Beyond its ability to construct videos based solely on textual guidelines, the template excels at transforming static images into dynamic videos, animating content with meticulous precision and attention to detail. Additionally, it can extend existing videos or seamlessly fill in missing frames, enhancing its versatility and usefulness in various creative activities.
Unlikely partnership in the works: Gemini + iPhone
Although OpenAI and its ChatGPT platform dominate the early days of the AI revolution, Google’s parent company Alphabet (GOOGLE) He’s unlikely to go down without a fight. Today, news broke regarding an unlikely potential partnership between Apple (AAPL) and Google. The two mega-cap tech giants are reportedly in talks to have Google’s generative AI platform, ‘Gemini,’ to power the AI capabilities of iPhones. A partnership between Apple and Google would create formidable competition for OpenAI.
Conclusion
The AI revolution is still in its early stages, but innovation and disruption are increasing dramatically. For investors, it’s important to follow industry sentiment because often these innovations lead to the next big stock market winners.
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Apple Inc. (AAPL): Free Stock Analysis Report
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PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
Upstart Holdings, Inc. (UPST): Free Stock Analysis Report
Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report
