- Brimming with the promise of unprecedented efficiency, artificial intelligence has been very much en vogue as of late
- The global artificial intelligence market is projected to reach nearly US$2 trillion by 2030, creating potentially lucrative optimization opportunities across industries
- Three companies – SuperBuzz, Nextech3D.ai and NexOptic – are keen on capitalizing on this trend through their respective niches
Brimming with the promise of unprecedented efficiency, artificial intelligence has been very much en vogue as of late.
Catalyzed by the viral appeal of applications such as ChatGPT – a chatbox designed to respond to a virtually infinite number of written user prompts – the sector has crystalized the cross-industry need to minimize human error and wasted energy on repetitive tasks to stand out from the competition.
According to Grand View Research, the global artificial intelligence market was valued at US$136.55 billion in 2022 with a projected CAGR of 37.3 per cent to nearly US$2 trillion from 2023 to 2030.
The main reason behind blooming AI innovation is easier access to historical datasets, with data storage and recovery, high computing power and parallel processing capabilities having become more economical over the past two decades. This allows researchers to take advantage of next-generation computing architectures to deliver insights faster than ever before.
It’s no surprise then that software solutions led the AI market with more than 36.7 per cent of global revenue in 2022, according to Next Move Strategy Consulting. The growing need to extract data through text/content/speech recognition and provide optimized real-time insights primes the segment to maintain its leadership position moving forward.
Another leading segment, advertising and media, accounted for over 19.5 per cent of global revenue in 2022. This dominance is attributable to the streamlined nature of AI marketing applications, where vast amounts of data are applied to fine tune messages to customer preferences at scale vs. the drawn out, Mad Men-style deliberations of old.
Generally speaking, AI appeals to a company’s bottom line, reducing overall costs, and thus yielding more profit, by operating beyond the capabilities of human cognition. If that isn’t a competitive mote, I don’t know what is.
As investors, the sector represents one of the most prospective sources of outsized returns available today. The key, as always, is to identify companies with proprietary technology solving marketable problems that offer long runways for growth. Let’s delve into three candidates with AI at the front-and-centre of their value propositions:
SuperBuzz (TSXV:SPZ)
SuperBuzz, est. 2018, is an AI company specializing in marketing technology. Its GPT-3-enabled SaaS platform uses natural language processing – computers’ ability to understand text and spoken words – to automate content creation and drive traffic for clients.
Source: SuperBuzz.
The platform’s underlying technology analyzes over 1 billion data points to generate quality, client-specific images, headlines, and descriptions to grow audiences, tighten branding, and save time and energy that can be rerouted into further innovation.
Supercharged with momentum from recent distribution through AppSumo and integration with Shopify, as well as its AI surpassing human-level quality, the company is well on its way to cementing its reputation as a next-gen pioneer in online marketing.
Nextech3D.ai (CSE:NTAR)
Nextech3D.ai applies augmented reality (AR) and AI technology to create 3D experiences for the metaverse. Its main business is creating 3D AR photorealistic models for the US$100 billion 3D models market for ecommerce.
Source: Nextech3D.ai.
Its 3D models, most of which are meant for Amazon, P&G, Kohls and other major ecommerce retailers, have been shown to result in:
- 94-per-cent higher click-through-rates
- 250-per-cent higher conversion rates for AR-enabled products
- 40-per-cent reductions in returns
The company also offers AI-powered AR navigation capabilities for venues and events with a growing leadership position in the US$44 billion indoor positioning and navigation market.
Strengthened by the latest in a series of generative AI breakthroughs, an expanded AI team, and the impending spin-out of Toggle3D, its 3D design studio, Nextech is staking its claim as the go-to name for customer-centric metaverse experiences.
NexOptic Technology (TSXV:NXO)
NexOptic is a purveyor of AI solutions for video applications that drastically reduce bandwidth and conserve energy, representing a key differentiator in the video streaming industry.
Source: NexOptic.
Backed by partnerships with the likes of NVIDIA and Qualcomm, the company is leveraging leading-edge deep learning technology that enables disk storage savings between 20-60 per cent and bandwidth savings between 20-60 per cent, all while remaining compatible with existing video technologies.
NexOptic achieves these reductions by creating smaller file sizes, facilitating lower bitrates without compromising video quality, whether on premise or through the cloud.
The company is also focused on AI imaging solutions that process raw images and video in real time to perfect resolution, lighting, sharpness and contrast. These solutions learn from real-world data and distill it into a tailored algorithm for licensing to OEMs, ODMs, Tier 1s and integration service providers.
As NexOptic executes on its growth strategy and onboards new partners, its technology’s ability to reduce carbon footprints while enhancing performance is fast becoming table stakes across vastly different vectors besides film and video, including 5G, robotics, automotive, defense, medicine and engineering, to name only a few.
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