Alphabet Inc. (GOOG): Snapchat Expands Partnership with Google Cloud
We recently compiled a list of the 10 AI News You Shouldn't Miss. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against the other AI stocks you shouldn't miss.
The Impact of AI on Investor Benefits
AI presents significant benefits for investors, primarily through increased efficiency, automation, and the potential for high returns in specific sectors. It leads to higher profitability and efficiency. For example, AI-driven automation enhances efficiency in trading, portfolio management, and operations, helping investors achieve better returns. According to a report by PwC, financial institutions that adopt AI could reduce operational costs by 22% in the short term, which directly improves profitability. Hedge funds, for instance, have seen an increase in efficiency, particularly in areas such as algorithmic trading and risk management.
A report by McKinsey suggests that AI-driven trading algorithms can outperform traditional investment strategies by identifying patterns and trends that are hard for human analysts to spot. This advantage could increase returns by 2-3% annually, which can compound into significant gains over time.
AI tools also provide real-time data analytics and insights, giving investors a competitive edge in making informed decisions. According to a study by Deloitte, 63% of financial executives believe that AI can dramatically improve investment decision-making by providing better market forecasts and risk assessments.
Expert Insights on AI in Investment Management
Tom Kehoe, a top researcher at Alternative Investment Management Association, has emphasized that AI is poised to revolutionize investment management, offering greater efficiency and precision in decision-making. Similarly, Larry Fink, the CEO of investment titan BlackRock, believes that AI will be a transformative force for wealth management, allowing firms to personalize portfolios and scale operations efficiently, which in turn create immediate value for investors.
Fink was quoted by Financial Times as saying that the collapse of productivity had been a central issue in the global economy. Per Fink, AI had the huge potential to increase productivity and transform margins across sectors, as it may be the technology that brought down inflation.
Alphabet Inc. (GOOG) and Snapchat Partnership
Alphabet Inc. (NASDAQ:GOOG) is a California-based technology company that owns and runs the internet search engine Google. Latest reports reveal that social platform Snapchat has expanded an existing partnership with Google Cloud to include generative AI features offered by the latter into the My AI chatbot offered by the former. According to the report, the chatbot will leverage the multimodal capabilities of Gemini AI by Google to enable the chatbot to understand different types of information, like text, audio, images, and videos. Snap has used ChatGPT by OpenAI, backed by Microsoft, for the My AI chatbot, but is now transitioning to the Google model in a bid to allow the chatbot also to process images and videos. Google claims that since the Snapchat integration, the chatbot saw over 2.5x as much engagement within the US.
Overall GOOG ranks 5th on our list of the AI stocks you shouldn't miss. While we acknowledge the potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe.
Exploring More AI Opportunities
If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
More Insights on AI and Investment
For more information on AI and its impact on investments, read about the $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
