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10 Best Artificial Intelligence Stocks to Buy for 2021

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In this article we will take a look at the 10 best artificial intelligence stocks for 2021. You can skip our detailed analysis of the AI industry’s outlook for 2021 and some of the major growth catalysts for AI stocks and go directly to 5 Best Artificial Intelligence Stocks for 2021.

Artificial intelligence is a buzzword increasingly being used by companies around the world that seek to project themselves at the forefront of cutting-edge research that promises to transform the lives of humans. As the word loses its meaning, it is important for investors to understand what artificial intelligence is and what companies stand to gain from breakthroughs in the new technology. Market estimates suggest that the artificial intelligence industry will witness a compound annual growth of more than 40% in the first half of this decade.

What is Artificial Intelligence?

Artificial intelligence, in the simplest words, uses data analytics to perform tasks that would otherwise be performed by humans. It is different from machine learning and deep learning in that machine learning is the ability of machines to learn without human intervention (AI requires a degree of human input) and deep learning is a type of artificial intelligence that solves complex problems mostly with the help of neural networks. All three are related but different from each other in numerous other ways as well.

Artificial intelligence is primarily being used by companies to mimic human behavior and improve existing products. The tools required for AI are delivered to these companies by chip-making and hardware firms working in the technology sector. For example, companies that develop self-driving cars, virtual assistants, and robotics are most likely to employ artificial intelligence to improve their products. AI can also be used to improve personal recommendations for users based on their internet history.

Leading researchers believe that AI is mostly used to mimic human behavior and is a far cry from the world of science fiction where AI is portrayed as a creative force. The principle use of the technology lies in complimenting human intelligence with low-level pattern recognition that would free up humans from having to do menial tasks so they can concentrate their energies elsewhere. The AI world is built on data. The widespread use of the internet has created so much data that AI companies can mine it for business products.

Technology firms with social media services are leading the AI revolution precisely because they have data banks that made it possible. These companies are also best placed to deliver on AI breakthroughs as they invest heavily in research and development. The companies that manufacture the hardware needed for AI to function in the physical world, electronics, automobiles etc, also stand to benefit as machine usage increases. Most of these companies have growth stocks, which have witnessed a slump in the past few months.