Bank of America has named global companies that are exposed to demand for generative artificial-intelligence solutions "winners", selecting stocks in the software and IT service sectors. In a research report dated 12th July, it described the AI opportunities within the software sector as "undeniably huge" and ranked European firms in the industry. BofA ranked French software company Dassault Systemes as the top ranking for its 2019 acquisition of healthcare data platform Medidata, meaning that it now has drug trial information on more than 7,000,000 patients. The analysts, led by Frederic Boulan stated that this huge amount of data was a treasure for many AI use cases. Generative therapeutics design is one of the most interesting use cases. The German software company SAP was also highly ranked. The bank chose the stock because of its enterprise resource management software, or ERP. ERP helps automate HR processes as well as other functions. Analysts at BofA stated that ERP systems hold large amounts of data on a business's operations, making them vital for any generative AI integration. The bank stated that "we see gen AI for Software as an opportunity to generate revenue through enhanced value proposition, data monetization and productivity improvements." BofA looked at generative AI's impact on the IT industry, and found that the implications were "the most polarized," citing concerns about sales drops due to automation. Analysts stated that IT Services firms are enabling GenAI for their customers by providing them with access to a large talent pool and opportunities in areas such as bespoke application development. Data analytics, cloud migration, and cybersecurity. The bank stated that IT consulting firms Capgemini, Kainos and Tietoevry were "well-positioned" to take advantage of the demand for AI services.
BofA stated that global revenues from AI will grow at a rate of 19% compounded annually, and reach $900 billion in 2026. This was based on data provided by the International Data Corporation. CNBC's Michael Bloom has contributed to this article.