Who Wins the Battle Between Humans and Robots? Investors Like Us

In the battle between humans and robots, robots just took a sizeable lead in my book... At least when it comes to customer service. I’ll explain what I’m referring to in just a moment. But for now, consider this: The rise of Artificial Intelligence-powered chatbots is a technology I’ve had my eye on for years. […] You're receiving this email as part of your subscription to Michael Robinson’s Trend Trader Daily [Unsubscribe](. [Trend Trader Daily] Who Wins the Battle Between Humans and Robots? Investors Like Us December 08, 2023 In the battle between humans and robots, robots just took a sizeable lead in my book... At least when it comes to customer service. I’ll explain what I’m referring to in just a moment. But for now, consider this: The rise of Artificial Intelligence-powered chatbots is a technology I’ve had my eye on for years. After all, Grand View Research pegged the size of the voice-bot market at more than $14 billion in 2021, and projects it will reach $56 billion by 2031. This is eye-opening growth. And it’s a market we don’t want to miss out on. So, how can these automated messengers deliver us a windfall of profits? Stick with me to find out... Two Contrasting Experiences First, though, let me tell you about my recent customer-service experience. The other day, I had to call a company’s customer-service line to fix an issue with ski passes my wife and I buy every year. A woman took my call, and, despite her best intentions, she had a hard time solving my problem. She spoke so quickly that I kept asking her to repeat herself. Furthermore, she requested all my personal details even though my entire account information could be viewed just by entering my phone number. A frustrating experience, to say the least. Compare that to the following day, when I had to call a different company to adjust a delivery date for a bouquet of flowers. This time, I got an automated chatbot, who instantly recognized my phone number and pulled up the order. When it learned I needed help, it suggested changing the delivery date, then stepped me through the entire process in just a few minutes. I even received an e-mail confirmation a short time later. With service like that, it’s no wonder robots are increasingly replacing humans when it comes to interacting with, well, other humans... Advantage, Robots Sure, voice-bot technology has become big in the customer-service industry. But it’s also being used in sectors like dining. Fast-food giant McDonald’s, for example, is adopting automated-voice technology to assist with drive-thru orders. Though still in its infancy, the technology was tested at 10 restaurants and took orders with 85% accuracy. In California, BJ’s Restaurants began testing an automated phone system in 2022. This system lets customers know how long the wait for a table is at their local establishment... And it enables diners to put their names on a waiting list without having to speak to an actual hostess. Too Late to Get In? As I mentioned earlier, I’ve been following this technology for some time, because I believe it has the potential to deliver significant profits to those who invest in it. In fact, I’ve previously recommended companies like Nuance Communications, a leader in this field with impressive credentials. Nuance pioneered AI-powered voice systems and is used by a who’s-who of clients. It has a particularly strong presence in healthcare, where some 77% of American hospitals rely on its technology for voice and text recognition. I would be quick to recommend Nuance as the ideal investment to take advantage of the rise of AI voice technology. The thing is, we can’t invest in this company anymore. Last year, it got scooped up in a $16.9 billion blockbuster deal. So, is it too late to invest in this sector? Not at all... Let’s simply turn our attention to Nuance’s acquirer... You Know This Company That company is Microsoft (Nasdaq: MSFT). Chances are, this stock is already in your investment portfolio, most likely as part of a broader fund. But I think it’s worthwhile to target this company individually. Why? Because Microsoft has repeatedly targeted individual companies itself in order to keep scaling. Yes, that includes the Nuance deal from a year ago. But in the last five years alone, Microsoft has acquired 45 companies. The Nuance deal is an especially savvy acquisition. As a reminder, Nuance is heavily involved in the healthcare space. And Microsoft’s Azure cloud-computing service has specialized platforms for healthcare. This purchase enables Microsoft to get a stronger foothold in the sprawling $1.2 trillion healthcare market. No doubt that Microsoft is already thinking of how to use Nuance’s technology in other industries, too. A Knack for Growth Microsoft is a world leader when it comes to AI — and not just voice-centric aspects, either. In 2019, it invested a billion dollars in OpenAI, the firm behind the breakthrough program ChatGPT. And last January, it cemented its relationship with OpenAI by agreeing to invest another $10 billion over the next several years. These investments will put the power of AI deep inside core products like Microsoft’s Azure service and Bing search engine, which is in a constant battle for supremacy against Google. Admittedly, it will take some time to see if Microsoft’s investments will pay off. But in the meantime, the company continues to report encouraging numbers. In the fiscal quarter ended September 30, per-share profits climbed 27% from the year before. And over the past five years, Microsoft’s stock has climbed 263% — more than three times that of the S&P 500. Bottom line: Microsoft continues to strive for growth and innovation, as evidenced by its recent foray into automated-voice technology. That makes this tech giant a sound addition to any investor’s portfolio. Cheers and Good Investing, [Michael Robinson] Michael Robinson Chief Investment Officer Trend Trader Daily   Copyright © Trend Trader Daily, All rights reserved. You signed up on []( Our mailing address is: Trend Trader Daily 1125 N. Charles Street Baltimore, Maryland 21201 [Update Subscription Preferences]( | [Unsubscribe from this list]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. You should consult a professional financial advisor before ever taking a position in any securities you see herein. DISCLAIMERS: The work included in this communication is based on diverse sources including SEC filings, current events, interviews, corporate press releases, and information published on funding platforms, but the views we express and the conclusions we reach are our own. 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