Many companies are now using artificial intelligence to do jobs that humans used to handle, according to The Information. Indeed, firms like PayPal (PYPL) and Shopify (SHOP) are telling staff not to request new hires unless they can prove that the job can’t be automated. As a result, PayPal said that AI now handles 80% of its customer service, which saves it time and cuts transaction losses by about $200 million a year. Meanwhile, Citi (C) and other banks are also using AI to automate tasks, especially in customer support and IT, in order to cut costs and reduce their workforce.
Unsurprisingly, executives are often careful when it comes to discussing AI’s impact on jobs, but some are clear that cuts are happening. Ernst & Young’s Sameer Gupta said that clients are already slowing down their hiring, and that the firm itself has started using chatbots to automate HR and finance tasks. At the same time, companies like Sysdig and Fujitsu (FJTSF) are using AI to generate sales leads and handle IT support tickets, while Broadcom (AVGO) uses it to avoid hiring more IT staff. Shopify and Fiverr (FVRR) have also told teams to use AI before asking for more workers.
This is because AI tools are letting companies double their output without adding staff. For example, United Wholesale Mortgage built an AI system that cut mortgage processing times from 45 minutes to just five, which allowed underwriters to handle twice as many loans. ServiceNow (NOW) is even pitching a “zero head count” IT model, while Fiverr’s CEO said everyone needs to start using AI because it Is changing the way work is being done across the board.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the AI stocks pictured below, analysts think that MU stock has the most room to run. In fact, MU’s average price target of $128.09 per share implies more than 87% upside potential. On the other hand, analysts expect the least from IBM stock, as its average price target of $264.08 equates to a gain of 10.43%.
