The International Data Corporation's (IDC) Worldwide Artificial Intelligence Spending Guide has released a forecast indicating significant growth in global spending on artificial intelligence (AI) technologies. According to the forecast, the total expenditure on AI, including software, hardware, and services for AI-centric systems, is projected to reach $154 billion in 2023. This represents a substantial increase of 26.9% compared to AI spending in 2022. Predicts a compound annual growth rate (CAGR) of 27.0% between 2022 and 2026. The trend of incorporating AI into a wide range of products and industries will persist, leading to even more significant growth in spending on AI-centric systems. By 2026, it is projected that spending in this area will surpass a notable milestone, reaching over $300 billion.
AI adoption is gaining significant traction across various sectors as businesses recognize its potential to drive innovation, improve operations, and deliver better customer experiences.
The two industries that will lead in AI investments in 2024 are banking and retail. These industries are expected to make the most substantial investments in AI technologies, including software, hardware, and AI-centric services.
Artificial intelligence in fin-tech is allowing companies to cut costs, automate their processes, and reduce the chances of error. AI-driven chatbots and virtual assistants have become invaluable assets in delivering seamless customer experiences. These AI-powered assistants are available 24/7, promptly addressing customer queries, providing support, and guiding users through financial transactions. AI is empowering small finance companies as it is affordable and the chances of error occurrence are very low.
Following banking and retail, the professional services industry is projected to be the next largest spender on AI technologies. This sector sees the value of AI in improving various aspects of its services, such as enhancing customer experiences and streamlining internal processes.
The discrete and process manufacturing industries are also among the top AI spenders. These sectors recognize the potential of AI in optimizing manufacturing processes, supply chain management, and quality control, leading to increased efficiency and cost savings.
Collectively, these five industries (banking, retail, professional services, discrete manufacturing, and process manufacturing) are expected to account for more than half of all AI-centric system spending in 2023.
Artificial intelligence (AI) has emerged as a game-changer in the fin-tech sector, revolutionizing the way financial services are delivered and transforming the industry. By harnessing the power of machine learning and advanced algorithms, AI enables computers to emulate human-like intelligence, leading to a wide array of benefits and opportunities.
Let's look at ASX AI-based shares that might show potential for 2024. These are as follows:
Note: The market cap and the share price of the selected ASX companies below are mentioned as of 29 December 2023.
Hitech Group Australia Ltd. (ASX: HIT)
Market Cap: $89.89 million
CMP: $2.13
Hitech Group Australia Ltd. (ASX: HIT) is specialized ICT contracting, consulting, and recruitment organization.
HiTech Group is well-prepared to cater to these evolving needs and capitalize on ensuing opportunities. Furthermore, HiTech Group's consistent financial performance over nine consecutive years, reinforced by a robust balance sheet and enduring supplier agreements, instills confidence in its ability to meet market demands and deliver value to shareholders. With its strong foundation and strategic market positioning, HiTech Group Australia Limited is poised to thrive in the dynamic and promising ICT landscape.
Bigtincan Holdings Ltd. (ASX: BTH)
Market Cap: $121.45 million
CMP: $0.20
Bigtincan Holdings Ltd. (ASX: BTH) offers an artificial intelligence-powered sales-enabled platform that allows sales and service organizations and their employees to engage with customers.
Bigtincan Holdings Limited is well-positioned to thrive in the evolving sales enablement platform market. The projected market growth to approximately US$6.8 billion by 2028 presents a significant opportunity for the company to expand its customer base and increase its market share. Bigtincan's platform, already adopted by over 2,000 organizations worldwide, empowers customer-facing teams and plays a vital role in shaping the future of buying experiences.
SensOre Limited (ASX: S3N)
Market Cap: $3.28 million
CMP: $0.09
SensOre Limited (ASX: S3N) focuses on mineral exploration, especially gold and nickel. They employ advanced technologies like AI and big data to enhance discovery processes. Their projects span the Kalgoorlie region, with services including prospectivity mapping and data management.
SensOre has partnered with Venture Minerals for Golden Grove North, with early field activities underway. Their Exploration AI Ventures collaboration with Deutsche Rohstoff progresses field evaluations for AI-generated targets, showing positive initial findings. In New South Wales, SensOre's government grant project for lithium exploration is near completion, including test fieldwork at Stelar Metals' Trident Project, enhancing exploration with AI and ML techniques.
Frequently Asked Questions (F.A.Q)
How do I invest in AI for the future?
There are a number of ways to invest in an AI-driven theme. The most welcoming person can invest directly in AI-based individual stocks. The indirect route to AI through ETFs or mutual funds is another way to invest.
What are the best AI stocks to invest in in 2024?
Let's look at ASX AI-based shares that might show potential for 2024. These are as follows:
• Hitech Group Australia Ltd. (ASX:HIT)
• SensOre Limited (ASX: S3N)
• Bigtincan Holdings Ltd. (ASX:BTH)
What is the significance of AI in the industry?
AI adoption is gaining significant traction across various sectors as businesses recognize its potential to drive innovation, improve operations, and deliver better customer experiences.
The two industries that will lead in AI investments in 2024 are banking and retail. These industries are expected to make the most substantial investments in AI technologies, including software, hardware, and AI-centric services.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.