Saturday, October 14, 2017

Risk of Artificial Intelligence as a Disruptor

Artificial Intelligence (AI) as a disruptor is the biggest risk to many businesses over the next 10 years. Many industries including Retail, Media, Advertising, Banking, Transportation are already facing an uncertain future.

Amazon(AMZN)
Innovation and exceptional customer satisfaction by Amazon is upending the retail industry. Even entrenched companies like Walmart and Costco are having a tough time competing. AI based innovation with Alexa and Echo and Amazons expansion into food retail and brick and mortar with Whole Foods and expansion of fulfillment and Amazon Prime all enhance the wide moat around Amazon's business. AWS and Advertising are two additional pillars of growth and profitability for Amazon.

Alphabet (GOOGL)
Alphabet is investing in Artificial Intelligence through self driving cars and by leveraging AI into all aspects of Google including mail, search, virtual assistant etc. YouTube has a lot of potential for growth and Alphabet continues to be dominant in the advertising market with Facebook a distant second.

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