Here’s how NVIDIA, Alphabet, Amazon and Microsoft are getting ready for — and already benefiting from — this transformational tech.

Artificial intelligence, or AI, is a big idea with an equally big opportunity. AI is slated to add $15.7 trillion to global gross domestic product (GDP) by 2030, according to research by PwC, and it’s going to change how we use transportation, and even how we do our jobs.

However, AI’s potential doesn’t mean much to investors unless they understand how companies are using and benefiting from this technology. So to help you understand how companies will make money from AI, let’s look at what Amazon (NASDAQ:AMZN)Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL)Microsoft (NASDAQ:MSFT), and NVIDIA (NASDAQ:NVDA) are already doing.

Smart speakers are sparking more business

Google is the primary driver of the vast majority of its parent company’s revenue, and those sales are mainly earned through selling ads online. Why does that matter for Google’s AI ambitions? Because the company is now vigorously pursuing sales of its smart speaker so it can collect more search data from users and use that information to sell even more ads.

The company’s Google Home smart speaker devices field similar questions you’d type into Google’s search engine, but instead, it uses the company’s AI assistant, called Google Assistant, to listen to requests. Voice searches are becoming a bigger part of online search, and Google knows that making this transition will help it maintain its advertising dominance.

At the end of 2016, Google held just 8.7% of the smart-speaker market, but it’s boosted that total to 22.7% currently. With this growth, Google is tapping further into the U.S. digital ad market, which was worth $107 billion in the U.S. this year.

Please click the course link below to see the rest of the article.

Source: The Motley Fool

Leave a Reply

Your email address will not be published. Required fields are marked *