Regulatory and commercial developments in artificial intelligence continue at a fast pace for investors homing in on AI stocks. Bank of America in a report called AI "for now, a baby bubble" and warned of some economic impact.
"AI is inflationary," said the BofA note published Friday. But the report added: "No way politicians in (the) 2020s would allow AI to cause widespread unemployment, even if transitory."
Meanwhile, Sam Altman, chief executive of ChatGPT creator OpenAI, testified in Congress for the first time on May 16. He called on Congress to create licensing and safety standards for advanced artificial-intelligence systems.
Meta Develops Custom AI Chips
In commercial developments for AI stocks, Facebook-parent Meta Platforms on May 18 hosted an "AI infrastructure" event. Meta also disclosed plans to build custom AI chips to be used in its data centers. The new Meta Training and Inference Accelerator, or MTIA, is due out in 2025.
Further, Amazon.com said it plans to add ChatGPT-like features to Alexa-enabled devices.
Also, chipmaker Nvidia and ServiceNow on May 17 announced a partnership. They plan to develop enterprise-grade capabilities in generative artificial intelligence to vastly improve business processes.
AI Stocks: Threat To Software Makers?
Software makers that sell products on a "per-seat," or user basis, face a threat from "generative AI." AI technology will speed up automation of manual tasks. That's always been the biggest reason companies buy software.
Companies that adopt generative AI technologies might, in fact, need fewer software licenses. ServiceNow addressed the issue at its analyst day, also on May 17.
"A key thread in the generative AI conversation is the degree to which seat-based subscription models will face pressure to adapt as AI-enabled productivity enhancements necessitate fewer seats," Morgan Stanley analyst Keith Weiss said in a note to clients.
Zoom Video, PANW Stock Earnings On Tap
Earnings are due for Zoom Video Communications on May 22. Also, cybersecurity firm Palo Alto Networks reports on May 23. Investors can expect management commentary from both firms on artificial intelligence.
Zoom Video on May 16 announced an investment in AI startup Anthropic. Anthropic's AI software will be integrated into Zoom's customer service platform.
Meanwhile, Palo Alto Networks has said more industry cooperation is needed to build AI large language data models that cybersecurity firms can share.
Further, Palo Alto Networks is just one of many AI stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
