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3 of the Latest (& Most Important) AI Innovations

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Investors who have followed U.S. equities over the past few years understand that we are in the midst of the next technological revolution. The explosion in stock prices and earnings in AI-related names like Nvidia ((NVDA - Free Report) ) has sparked an AI innovation race. Below, I’ve listed three of the most important AI stories to track:

Klarna’s AI Assistant Yields Incredible Results

Klarna is a fintech 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, providing consumers with flexible payment options. Klarna also offers a range of financial products and services, including direct payments, financing, and banking solutions, aiming to simplify the shopping experience and provide greater financial flexibility for consumers worldwide.

In a February 27th press release Klarna revealed shockingly positive statistics about its OpenAI (and Microsoft ((MSFT - Free Report) )) powered AI assistant. Stats included:

  • The AI assistant has had2.3 million conversations, two-thirds of Klarna’s customer service chats
  • It is doing the equivalent work of 700 full-time agents
  • It is on par with human agents in regard to customer satisfaction score
  • It is more accurate in errand resolution,leading to a 25% drop in repeat inquiries
  • Customers now resolve their errands in less than 2 mins compared to 11 mins previously
  • It’s available in23 markets, 24/7 and communicates in more than 35 languages
  • It’s estimated to drive a $40 million USD in profit improvement to Klarna in 2024

(Source: Klarna.com)

The enormously positive statistics tell me that AI is already at a point where it can completely disrupt the customer service industry for many companies, increasing customer satisfaction and driving profits. If Klarna can do it, I would expect that other fintech firms such as Affirm Holdings ((AFRM - Free Report) ), Upstart ((UPST - Free Report) ), and PayPal ((PYPL - Free Report) ) will follow suit.

Sora: Text-to-Video is Around the Corner

Sora is a text-to-video AI platform that OpenAI has been teasing. Sora can craft intricate scenarios featuring numerous characters, distinct motion patterns, and precise depictions of both the subject and the surroundings. Beyond its capacity to construct videos based solely on textual directives, the model excels in transforming static images into dynamic videos, animating the contents with meticulous accuracy and attention to detail. Furthermore, it can extend existing videos or seamlessly fill in absent frames, enhancing its versatility and utility in various creative endeavors.

Unlikely Partnership in the Works: Gemini +  iPhone

Though OpenAI and its ChatGPT platform dominate the early innings of the AI revolution, Google parent Alphabet ((GOOGL - Free Report) ) is unlikely to go down without a fight.Today, news broke about an unlikely potential partnership between Apple ((AAPL - Free Report) ) and Google. The pair of mega-cap tech giants are reportedly in discussions to have Google’s generative AI platform, “Gemini,” to power the iPhones AI capabilities. A partnership between Apple and Google would create some formidable competition for OpenAI.

Bottom Line

The AI-revolution is in its early innings, but innovation and disruption are increasing dramatically. For investors, it is important to track the industry climate, as often, these innovations lead to the next big stock market winners. 

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