The era of artificial intelligence (AI) is undoubtedly upon us. It’s still unlikely, however, that you’re regularly using a consumer-facing AI tool like Google’s Gemini or ChatGPT as anything other than a curious novelty. Such tech is seemingly more suited for the business world.
However, businesses aren’t all embracing AI solutions yet either. Oh, they know they could. They may even recognize they’ll need to dive into AI waters headfirst sooner than later. It’s just not entirely clear to most corporate managers how they should proceed, nor is it clear which AI tools are worth investing in.
One company arguably stands more ready than any other to capitalize on this swell of demand for AI.
It’s seemingly everywhere, and yet, it’s not. Although a majority of adults living in the United States are now regular users of some sort of voice-powered tech, their interest mostly stops there. Only a minority is using generative artificial intelligence. Trust and usefulness were and are common concerns of would-be users.
Usage of AI among institutions is even more anemic. As The Motley Fool’s own in-house research arm reports, only 6.8% of businesses located in the U.S. are using AI tools despite the availability of this technology. As the report explains, “AI use cases are still relatively narrow, and use on a large scale can be complex and expensive.” The Boston Consulting Group recently quantified the challenge. Of the companies that have adopted some sort of AI tool, 74% are struggling to achieve a return on their investment.
We’re arguably at a turning point though. Despite a limited profitable purpose thus far, consulting firm McKinsey reports that 92% of enterprises intend to increase their investments in AI over the coming three years. Getting these investments into action won’t take nearly that long. The Motley Fool’s research shows that business’s AI usage rates are likely to grow from less than 7% now to 9.3% just within the next six months, jolting this sliver of the industry into a longer-term growth trend.
Indeed, industry research outfit Precedence Research believes this business-oriented piece of the AI market is set to grow at an annualized pace of nearly 16% through 2034. A company called Palantir Technologies (NASDAQ: PLTR) is poised to capture more than its fair share of this growth.
Never heard of it? If not, don’t sweat it. Plenty of people haven’t. Its (relatively) modest market capitalization of $200 billion and lack of consumer-facing products leave it off of most peoples’ radars. Investors will want to make a point of putting it on their radars. Palantir represents the future of business-aligned AI. It helps institutions do something constructive with the digital data they’ve been piling up for years now.
