The shares of BuzzFeed Inc. (BZFD ) went up 92% in one trading day after The Wall Street Journal broke the news of the company's plans to use artificial intelligence AI programs to create quizzes and other content for readers.
That was just one trading day. Shares of BuzzFeed finished 300% higher the week, and there was a strong interest in AI that boosted shares of companies that are just starting to dabble with the technology. The Chinese search company BIDU is building an AI search engine that competes with AI chatbot ChatGPT, a move that jumped 13% on Monday. Since mid-January, the SOUN has jumped 100%, according to SoundHound AI Inc.
Last week brought news of Microsoft Corp. s decision to invest $10 billion in OpenAI, the company behind ChatGPT. The report predicted that the global AI market will total $1.39 trillion by 2029, which is a result of the explosion in interest in artificial intelligence. That would mean an average annual growth rate of over 20%.
AI has helped companies reduce inefficiencies, which is a positive for the economy. Since 2017 airlines have been using machine learning to predict how many seats they can sell without overbooking, and Chick-fil-A used AI to help ensure waffle fries are baked on a schedule to maximize freshness when serving. As the relatively new technology goes through the growing pains and adjustments seen by every revolutionary industry before it, inefficiencies in AI are rampant.
An example of this is AI's contribution to marketing. Some senior advertisers say that AI programs are at least as competent as their first-year marketing employees at generating pitches, but as much as $75 billion is wasted every year on ineffective marketing campaigns. One startup has set out to solve the problem by translating marketing gibberish into plainspoken, human-sounding copy that resonates.
RAD AI was founded in 2015 and is the world's first marketing platform built to understand human emotion. It is already growing revenue at a rate of 310% year-over-year, and investors can claim shares of this private company for a limited time.
You can find more information on Benzinga's investment.