Forget tech giants - these surprising companies are riding the AI wave:
From utilities to coffee shops, AI is shaking up industries across the board. Here's the scoop:
| Company | Industry | AI Use |
|---|---|---|
| Constellation Energy | Utilities | Powering AI data centers |
| NextEra Energy | Renewable Energy | Meeting AI's electricity demand |
| Medtronic | Healthcare | AI-powered medical devices |
| JPMorgan Chase | Finance | Fraud detection, automated trading |
| Lockheed Martin | Defense | AI in combat systems |
| Starbucks | Retail | Personalized experiences, inventory management |
The AI market is exploding:
- Worldwide AI spending to hit $632 billion by 2028
- 87% of companies using or testing AI
- Some firms investing over $50 million yearly in AI
Bottom line: AI isn't just for Silicon Valley anymore. These unexpected players are using AI to boost productivity, slash costs, and get ahead in their fields.
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Constellation Energy: Powering AI with Nuclear
Constellation Energy, America's top nuclear plant operator, is jumping on the AI bandwagon. Here's the scoop:
Three Mile Island's Comeback
Constellation's dropping $1.6 billion to wake up the Three Mile Island reactor (Unit 1). This 837-megawatt beast, dormant since 2019, is getting an AI-fueled makeover.
And guess who's buying all that juice? Microsoft.
They've inked a 20-year deal with Constellation - their biggest power purchase ever.
Why Nuclear for AI?
Simple: data centers are power hogs. Microsoft's opening a new one every three days. And AI centers? They're even thirstier:
| AI Data Centers vs Traditional |
|---|
| 7x more power hungry |
| Adding 323 terawatt-hours by early 2030s |
Constellation's CEO Joe Dominguez puts it bluntly:
"AI's power appetite is a nuclear energy goldmine."
Wall Street's Loving It
The market's all over this AI-nuclear mashup:
- Constellation's stock? Up 22% post-Microsoft deal
- It's climbed 60% this year, landing third on the S&P 500
AI's Not Just a Customer
Constellation's using AI to sharpen its game too. They're rolling out machine learning in their plants to boost efficiency and trim costs.
In 2023, AI at Limerick Generating Station caught wonky sensors, keeping operations smooth and compliant.
Jason Murphy, Constellation's Nuclear Fuels VP, says:
"Our AI team-up with Blue Wave AI Labs is supercharging our nuclear fuel design process."
This AI boost could save the nuclear industry $80 million in three years.
Constellation Energy's showing how old-school industries can ride the AI wave, turning nuclear power into tech's new best friend.
2. NextEra Energy
NextEra Energy is cashing in on AI's power-hungry appetite. As a top renewable energy player, they're meeting the skyrocketing electricity demand from data centers, especially those running AI.
Rebecca Kujawa, NextEra's renewable development chief, put it this way:
"There is an enormous amount of demand being driven across the US economy by the growth in data centers, driven by a lot of things of course, but specifically generative AI."
NextEra's not just talking the talk. They're:
- Building 3+ gigawatts of clean power for data centers
- Added 9 gigawatts of new renewable projects to their backlog last year
- Planning 20+ gigawatts of clean energy projects
But they're not stopping at power supply. NextEra's using AI to find prime spots for new data centers based on solar and wind resources. Talk about a win-win.
Kirk Crews, NextEra's CFO, noted:
"Strong demand for the company's power is partly due to industrial customers looking to decarbonize operations and meet AI and data center demand."
This AI-driven power surge caught many off guard. Some coal plants even delayed retirement. But NextEra? They're ready to ride this unexpected AI wave, potentially becoming a dark horse in the AI stock race.
3. Medtronic
Medtronic, the world's largest healthcare tech provider, is going all-in on AI. They're not just using it - they're banking on AI to drive growth.
Here's what Medtronic's up to:
1. AI-powered medical devices
Meet GI Genius, Medtronic's AI-assisted colonoscopy tool. It's the first of its kind to get FDA clearance. This smart system helps doctors spot polyps that could turn into colorectal cancer.
How good is it? Traditional colonoscopies miss up to 50% of polyps. GI Genius catches them without false alarms.
Medtronic's CEO, Geoff Martha, put it bluntly:
"The unlock here was AI."
2. Tech giant partnerships
Medtronic's not going solo. They've teamed up with NVIDIA to boost their AI game. The goal? Integrate NVIDIA's tech into GI Genius.
This collaboration could speed up AI innovation in healthcare. NVIDIA's Kimberly Powell said:
"Artificial intelligence is a powerful tool that can increase the speed, efficiency and effectiveness of global health systems."
3. Building an AI powerhouse
Medtronic's all in. They've set up an AI center of excellence to push healthcare AI boundaries. They're tapping into millions of patient datasets, regulatory know-how, and their device expertise.
The result? Over 200 AI application ideas, with several already funded.
4. AI across the board
It's not just about fancy gadgets. Medtronic's bringing AI to every corner of their business. They've rolled out tools like Microsoft 365 Copilot and an internal chatbot, MedtronicGPT, to their staff.
The aim? Boost productivity and improve patient care across the board.
Medtronic's Chief Technology Officer, Ken Washington, put their reach in perspective:
"If you do the math, that's two people every second of every day getting touched by technology that's coming."
In the AI race, Medtronic's showing that medical device makers can be serious players. They're not just riding the AI wave - they're surfing it to new heights in healthcare innovation.
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4. JPMorgan Chase
JPMorgan Chase, the biggest U.S. bank, is going all-in on AI. They're not just testing the waters; they're diving deep.
Here's what JPMorgan's doing:
1. Big AI Spending
JPMorgan's putting up serious cash. They plan to invest $1 billion or more yearly in AI. That's a lot, even for a banking giant.
Daniel Pinto, President and COO, says:
"I think people will become far more productive with AI, though we want to use it responsibly."
2. AI Helper for Staff
They're giving 140,000 employees an AI assistant called LLM Suite. It's meant to boost productivity across the board.
3. IndexGPT: Smart Investing
IndexGPT is their new AI tool. It uses OpenAI's GPT-4 to create themed investment baskets. It's not just fancy - it's changing how thematic investing works.
Rui Fernandes, head of markets trading structuring, explains:
"It's about being able to select a broader range of stocks that are not necessarily the obvious companies that everyone already knows about."
4. Fighting Fraud with AI
JPMorgan's AI could save up to $2 billion, mostly in fraud prevention. That's good for customers and the bank's bottom line.
5. Upskilling Workers
They're not just using AI; they're preparing for an AI future. They've built a team of over 2,000 AI/machine learning experts and data scientists.
Jamie Dimon, Chairman and CEO, doesn't mince words:
"AI's impact will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years."
JPMorgan Chase is showing that old-school banks can be AI leaders. They're not just riding the AI wave - they're shaping banking's future with it.
5. Lockheed Martin
Lockheed Martin, the world's biggest military contractor, is going all-in on AI for defense. They're not just testing the waters - they're making waves.
Here's what they're up to:
- AI Text Navigator
Lockheed Martin rolled out LMText Navigator, an AI tool running on NVIDIA's DGX SuperPOD. It's not just fancy tech - it's changing how they work.
"With more than 8,000 engineers and developers using AI Factory, Lockheed Martin is pushing the frontiers of our AI solutions." - Greg Forrest, Director of AI Foundations
- DARPA Contract
DARPA handed Lockheed Martin $4.6 million to develop AI for airborne missions. The 18-month project aims to create AI agents for live, multi-ship, beyond visual range missions.
- Spacecraft Monitoring
Their T-TAURI system keeps an eye on Pony Express 2 mission smallsats, catching potential issues faster than humans.
- Aircraft Inspection
They're using AI to spot aircraft problems, cutting costs and boosting safety.
- Naval Combat Systems
Lockheed Martin's AI is beefing up the U.S. Navy's Aegis Combat System. This tech has already helped update destroyers to tackle real-world threats.
"At Lockheed Martin, our AI capabilities are designed to help customers complete their missions with greater speed, accuracy and safety." - Dr. Steven Walker, Chief Technology Officer
Lockheed Martin isn't just talking AI - they're using it to reshape defense tech. From text analysis to spacecraft monitoring, they're proving that old-school defense companies can lead in AI too.
6. Starbucks
Starbucks isn't just about coffee anymore. They're quietly becoming a tech giant with their AI platform, Deep Brew.
Here's how they're using AI to supercharge their business:
1. Smart Customer Experiences
The Starbucks app uses AI to figure out what you like. It looks at what you've ordered before and suggests drinks you might enjoy. It's like having a barista who knows your taste in your pocket.
2. Inventory Magic
Deep Brew makes sure stores have the right stuff at the right time. No more running out of your favorite beans or wasting food.
3. Staff Scheduling
AI predicts when stores will be busy and helps schedule staff accordingly. It's all about having the right number of baristas when you need them.
4. Location, Location, Location
When Starbucks opens a new store, they're not just guessing. They use AI to crunch numbers on things like local income and traffic to pick the perfect spot.
5. New Product Ideas
AI helped Starbucks realize that 43% of tea drinkers don't add sugar. The result? Unsweetened ice tea K-Cups. It's like having a crystal ball for product development.
The numbers don't lie:
- 52% of U.S. company-operated sales come from Rewards members
- 26% of U.S. company-operated transactions are mobile orders
- U.S. same-store sales jumped 9% in a recent quarter
"Our app is the envy of every retailer. We scaled our e-commerce and rewards programs to support Starbucks aggressive digital growth." - Deb Hall Lefevre, CTO of Starbucks
Starbucks isn't stopping at software. They're rolling out 4,000 AI-powered Mastrena II espresso makers. These smart machines make coffee faster and can whip up a wider range of drinks.
In short, Starbucks is using AI to know what you want before you do, keep their stores running smoothly, and even make better coffee. It's not just about beans anymore - it's about bytes too.
Good and Bad Points
Let's break down the pros and cons of each company's AI journey:
| Company | Pros | Cons |
|---|---|---|
| Constellation Energy | AI for grid optimization, predictive maintenance | High costs, regulatory hurdles |
| NextEra Energy | Renewable energy forecasting, smart grid management | Weather data reliance, cybersecurity risks |
| Medtronic | AI in medical devices, personalized care | Strict approvals, data privacy issues |
| JPMorgan Chase | Fraud detection, automated trading | Job displacement, algorithmic bias |
| Lockheed Martin | Defense systems AI, autonomous vehicles | High costs, ethical warfare concerns |
| Starbucks | Personalized experiences, inventory optimization | Privacy issues, potential tech glitches |
These companies face common AI challenges:
1. Data Quality
Garbage in, garbage out. Bad data = bad decisions.
2. Implementation Costs
AI isn't cheap. Price tags range from $20,000 to millions.
3. Human Touch
AI lacks emotional smarts. Dave Rocker of the Rocker Group says:
"AI is still less than ideal for accommodating unexpected problems."
4. Upkeep
AI needs constant updates. It's a resource drain.
5. Ethics
AI in defense or finance? Sticky ethical questions abound.
But the payoff could be HUGE. The global AI market's set to explode from $119.7 billion in 2022 to $1,591 billion by 2030. That's a 38.1% annual growth rate.
For investors, it's a mixed bag. Some companies will soar, others will crash. Look past the hype. Focus on real AI innovators.
Wrap-up
AI's impact goes way beyond the tech giants. It's shaking up industries you might not expect.
Check out these surprising AI stock winners:
| Company | Industry | Stock Boost | AI Use |
|---|---|---|---|
| BuzzFeed | Media | 108% | AI-generated content |
| Carvana | Auto Retail | 175% | AI for operations |
| Sprouts Farmers Market | Grocery | 97% | AI inventory management |
| Koss Corporation | Audio Equipment | 98% | AI in legal battles |
| SoundHound AI | Voice AI | 155% | Voice tech adoption |
It's not just chatbots and image generators. AI is changing how companies work across the board.
For investors, this means looking past the obvious tech stocks. Power companies are using AI to optimize grids. Medtronic's putting AI in medical devices. Even Starbucks is personalizing your coffee run with AI.
The big picture? AI's everywhere. Charles Schwab puts it well:
"Investors will likely have a lot to study and may need to pivot or revise their plans as this technology evolves."
Want to spot potential AI winners? Here's what to do:
- Listen for AI talk in earnings calls
- Find companies using AI across departments
- Think about how AI could shake up old-school industries
AI's not just a tech story. It's changing the game for businesses everywhere.
