Alphabet boasts an advantage in potential applications of artificial intelligence (AI) solutions, according to a recent report published by Edison Investment Research. The firm’s analyst Richard Windsor claims that consumer-grade AI applications are finally becoming a reality, adding that the Mountain View-based tech giant has the best chance to win the AI race in terms of potential applications and related revenue. Apart from Alphabet, Windsor also stated that Baidu and Yandex — the largest Internet search giants in China and Russia, respectively — have an excellent chance of making their AI endeavors profitable in the long term.
The 51-page report explains how the largest Internet search engines on the planet already have a vast database of user data that they can use to improve their AI solutions and teach machines to be more useful and desirable. Coincidentally, major providers of search engines have also invested more time and resources into developing this emerging technology than their competitors, which is another factor that could possibly tip the scales in their favor, Windsor claims. According to Edison Investment Research, Internet giants are the only companies that could realistically improve their AI offerings to the point where they start making money from them in the not too distant future.
Tech giants are still considering potential AI applications that would make business sense in the long term and while many related challenges still haven’t been resolved, Windsor thinks that if anyone is able to solve them soon, the likes of Alphabet, Baidu, and Yandex are. The report also reflects on Amazon’s Alexa voice-enabled assistant and related products like the Echo connected speaker as the analyst claims Amazon’s offerings still aren’t able to provide a quality user experience and will therefore struggle to be successful in the future as better and cheaper products and services enter the market. Windsor still believes that Alexa-enabled products will be an attractive proposition to Amazon Prime subscribers but doesn’t think that will be enough for Amazon to become the first company with a profitable AI business. The latest report from Edison Investment Research can be read in its entirety by following the source link below.
