I would say my AI stock pick is a little left of centre, but bare with me…
Coca Cola & Artificial Intelligence
Coca Cola is the quintessential American brand. So popular, it has remained on top for thirty years. Coca Cola has a number of competitive advantages as we enter the age of automation.
• Brand Power: Coca Cola has passed Buffett’s test as a brand with a cult-like following across the world. Coca-Coca is so popular, the brand name is synonymous with cola. When you want a cola soda, you ask for a Coke.
• Drinks Business Does Not Change: Coca Cola will survive the automation age, because its difficult to disrupt. It has a supply chain that does not need improvement. Tech companies have a leg up over retail, because their distribution channels are faster and cheaper. If you order a book, would rather have it in one day at 20% less, or have week later at 20% more.
These supply chains make no difference to Coke. No one orders Coke to their house. They by it from Supermarkets. Having a faster, cheaper supply chain is not important to Coke’s business
Why Is Coke An Artificial Intelligence Stock To Invest In?
These two conditions create a company which is nearly un-disruptable. This means that Coke will have time to develop its AI processes very slowly, without the threat of impending disruption by others. Marketing automation, factory automation, supply chain automation - all of these factors will grow a company’s bottom line over time, bringing large returns to shareholders in the long-run.
Short answer: Coke is almost undisrutable. This means it does not need to rush to invest in AI processes in fear of being taken over. It can implement machine learning and AI processes in the long-run without fears of being crushed.