Saturday, August 5, 2023

The week in AI

Hi, it's Jesse in New York. More companies are integrating AI into their platforms and workplaces, but concerns remain.Companies continue to

More companies are integrating AI into their platforms and workplaces, but concerns remain.

The office chatbot

Companies continue to debate the merits of artificial intelligence in the workplace. Some have banned tools like ChatGPT citing information security concerns, whereas others have gone all-in on generative AI.

Hedge funds and other money managers are increasingly using OpenAI Inc.'s ChatGPT for marketing and summarizing documents. But Securities and Exchange Commission Chairman Gary Gensler is focused on the risk to markets and investor when AI is making trades and recommendations.

More chatbots are coming. Uber Technologies Inc. is developing its own bot. And with back-to-school season nearly here, online education platforms Pearson Plc and Coursera Inc. are introducing their own AI tools. 

The EU has been leading the charge in AI regulation, becoming one of the first in the world to take wide-reaching action. At the same time, European businesses don't want to get left out of the AI boom like they did when the internet took off.

In earnings news, cloud services companies are showing early signs of a comeback, but generative AI hasn't done much yet to boost cloud sales. 
Advanced Micro Devices Inc. gained after the chipmaker topped second-quarter estimates, putting it in closer competition with Nvidia Corp.

Meanwhile, Taiwan Semiconductor Manufacturing Co., the world's biggest chip company and a key supplier to Nvidia, has dropped more than 6% from a peak reached in June.

In South Korea, a little-known circuit board maker — which counts Alphabet Inc., Nvidia and Microsoft Corp as customers — has seen its share price surge 487% this year.

AI could fuel a continued stock rally for Adobe Inc., too. An analyst at Morgan Stanley sees the creative software maker's shares adding a further 25% over the next year.

One to watch

Watch Bloomberg TV's analysis of how AI impacted AMD earnings.

The week ahead

Quarterly earnings are winding down, but Monday kicks off with a financial report from Palantir Technologies Inc., which has been selling the AI angle hard to investors.

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