Non-Technology Companies Betting Big on Artificial Intelligence

The next generation of technological advancement will be focused heavily on unlocking the power of artificial intelligence. But investors who are looking to profit off of the AI boom don’t necessarily need to be looking for early-stage tech companies developing cutting-edge AI software.

Companies in every sector of the economy will be able to improve their efficiency and cut costs by embracing AI technology. According to Loup Ventures analyst Doug Clinton, every company will eventually need to be an “artificial intelligence company” to succeed in the modern economy.

In a new report, Clinton highlighted 17 companies in non-technology fields that have been early investors in artificial intelligence. Loup added these 17 stocks to its new Non-Tech AI Portfolio and will track the portfolio’s future performance.

“We believe the non-tech winners in AI are going to start to demonstrate clear competitive advantages over the next several years, which will ultimately be reflected in their stock prices,” Clinton wrote.

Loup sorted through earnings call transcripts and news headlines to identify companies that are prioritizing AI initiatives.

For example, one of the stocks included in the portfolio is athletics apparel leader Under Armour (ticker: UAUAA). Under Armour is working with International Business Machines Corp. (IBM) and its Watson machine learning platform to develop personalized fitness and health-monitoring apps. The company is also using AI technology to design its clothing and footwear as well.

Construction giant Caterpillar (CAT) is a far cry from a Silicon Valley tech startup, but it recently created an entire analytics and innovation division to help integrate AI into its products. Caterpillar can use AI technology to increase preventative maintenance and also help companies plan and analyze projects.

In addition to Caterpillar and Under Armour, Loup’s portfolio of non-tech AI leaders includes IDEXX Laboratories (IDXX), GlaxoSmithKline (GSK), Macy’s (M), FedEx Corp. (FDX), Accenture (ACN), Interpublic Group of Companies (IPG), Northern Trust Corp. (NTRS), Nasdaq (NDAQ), Avis Budget Group (CAR), Boeing Co. (BA), Halliburton Co. (HAL), Pioneer Natural Resources Co. (PXD), Domino’s Pizza (DPZ), Monsanto Co. (MON) and Deere & Co. (DE).

While these companies might not yet be associated with artificial intelligence, long-term investors are hoping…

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