How AI Works: From Neural Networks to Real-World Use
2 Artificial Intelligence Stocks To Buy In May
The AI industry is staring down an uncertain and volatile macroeconomic environment, as well as some signals that demand for AI infrastructure may be starting to cool. AI server manufacturer Super Micro Computer slashed its guidance earlier this week as customers delayed purchasing decisions, and some tech giants reportedly have been pulling back on data center expansion.
But investors remain keen on investing in artificial intelligence (AI). What are the best AI stocks to buy in May? Personally, I'd steer clear of AI hardware companies like Super Micro and Nvidia, as well as hyperscalers like Microsoft that are pouring incredible amounts of capital into AI data centers to power the latest compute-hungry AI models. Instead, I'd focus on companies that are betting on AI inference and small, efficient, specialized AI models and agents. My top two picks this month are International Business Machines (NYSE: IBM) and Cloudflare (NYSE: NET).
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Winning in enterprise AIThere are multiple components to IBM's AI strategy, and all of them focus on real-world use cases for enterprise clients. The company has booked $6 billion in generative-AI-related business so far, adding $1 billion to that total in the first quarter, and much of that comes from the consulting business. While clients are being cautious with discretionary spending, generative AI projects are still getting the green light.
The consulting business feeds into the software business, where IBM's Watsonx AI platform headlines the company's AI efforts. Watsonx enables enterprise clients to build, test, deploy, and manage AI models and agents. The focus here is on small, fine-tuned models aimed at doing specific tasks well. IBM claims that enterprises can reduce costs by as much as 98.5% by switching away from expensive, general-purpose AI models.
Artist's rendering of a digital human face, lit up in the cosmos.
Image source: Getty Images.
Lastly, there's IBM's mainframe business. While the mainframe isn't as prolific as it once was, some industries continue to depend on the ultra-powerful systems due to their reliability and backward compatibility with decades-old code. The upcoming z17 mainframe, set to launch in June, can churn through 450 billion AI inferencing operations per day with latency of around 1 millisecond. This makes the system ideal for real-time AI inferencing tasks like detecting credit card fraud.
Taken altogether, IBM has built a broad portfolio of enterprise AI services, software, and hardware. While the company isn't immune to an economic slowdown, AI projects meant to reduce costs or boost efficiency should continue to be in demand from IBM's enterprise clients.
Fast AI inference at the edgeCloudflare is all about speed. A developer can stick Cloudflare's platform between a user and a web application, performing ultra-fast computations on the fly when a user makes a request. There are many use cases that are covered by Cloudflare's platform, including handling redirects, enforcing authentication, and returning different responses based on the user's location. Another use case is running AI inference tasks using small, efficient, fast models without needing to worry about managing infrastructure or scaling resources.
Cloudflare's AI platform supports more than 50 open-source AI models, including models capable of generating text, classifying images, translating text, converting text into speech, and summarizing content. These models integrate tightly with Cloudflare Workers, the company's serverless computing product, allowing them to be programmatically accessed in response to user requests.
Because Cloudflare focuses on AI inference and running smaller AI models, the company doesn't need the absolute fastest AI accelerators that are typically used for computationally intensive AI training workloads. Instead, the company has some leeway to install older, less expensive AI accelerators while still achieving the necessary performance and latency for AI requests. This takes Cloudflare out of the scramble to secure the latest and greatest GPUs from Nvidia and likely reduces costs considerably.
Cloudflare's revenue grew by 27% year over year in the fourth quarter of 2024, and it gained a record number of large customers spending at least $1 million annually on the platform. With nearly 240,000 paying customers, Cloudflare's AI products are an easy choice for customers looking to deploy AI inference workloads.
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Timothy Green has positions in International Business Machines. The Motley Fool has positions in and recommends Cloudflare, International Business Machines, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
10 Essential Business Skills For Success According To AI
This article is published by AllBusiness.Com, a partner of TIME.
Success in the business world isn't just about having a good idea—it's about execution, strategy, and adaptability. As industries evolve and technology advances, the skills required to thrive in the competitive landscape also change. Today's business leaders must balance traditional abilities, like communication and financial acumen, with modern skills, such as technological literacy and knowledge of artificial intelligence (AI). Developing these skills is not just about climbing the corporate ladder; it's about creating value, fostering innovation, and building strong relationships.
The business environment demands a dynamic set of abilities, and mastering these essential skills can significantly impact your career trajectory. Whether you're a budding entrepreneur or a seasoned executive, a commitment to personal and professional development can set you apart from the competition. It's not enough to focus solely on technical expertise—interpersonal skills and a growth mindset are just as critical.
AI tools like ChatGPT are increasingly helping professionals identify and refine these essential business skills. By leveraging AI-driven insights, individuals and organizations can pinpoint areas of improvement and develop tailored strategies for success.
This article, prepared with the research assistance of ChatGPT, explores the 10 essential business skills for success, breaking down each one to give practical insights and actionable steps. These skills serve as the foundation for building a thriving career and ensuring long-term growth in any industry.
Essential Business Skills 1. Leadership SkillsLeadership is the cornerstone of success in any business. A great leader inspires their team, sets clear goals, and creates an environment where individuals can thrive. Effective leadership goes beyond giving directions—it involves understanding team dynamics, fostering collaboration, and empowering others. Humility and gratitude are also key traits of exceptional leaders, as they help build trust, acknowledge contributions, and create a positive workplace culture. Emotional intelligence (EQ) enables leaders to understand and manage emotions, build trust, and navigate social dynamics effectively. The ability to lead with vision and empathy is what separates good leaders from exceptional ones.
Key Insights:
Communication is the backbone of every successful business interaction. It includes not only speaking and writing clearly but also active listening and understanding non-verbal cues. Strong communicators can articulate their ideas effectively, build rapport, and resolve conflicts efficiently. Whether in meetings, emails, or presentations, communication is key to fostering relationships and achieving business objectives.
Key Insights:
Strategic thinking is the ability to see the bigger picture and plan for the future. It involves analyzing data, identifying opportunities, and making informed decisions that align with long-term goals. This skill helps businesses stay competitive by anticipating market trends and navigating challenges. A strategic thinker combines creativity with logic to create innovative solutions.
Key Insights:
Time is one of the most valuable resources in business, and managing it effectively can make or break productivity. Good time management involves prioritizing tasks, delegating responsibilities, and avoiding procrastination. Professionals who master this skill can achieve more in less time while maintaining a healthy work-life balance.
Key Insights:
Understanding financial concepts is crucial for making informed business decisions. Financial literacy involves knowing how to read balance sheets, manage budgets, and interpret key financial metrics. This skill ensures that resources are allocated wisely and financial risks are mitigated. Entrepreneurs and executives alike must understand the financial implications of their strategies.
Key Insights:
Understanding how to integrate AI and technology into your business is becoming increasingly important. AI can streamline operations, enhance customer experiences, and provide valuable insights through data analysis. Leaders who grasp the potential of AI can create competitive advantages and drive innovation within their organizations.
Key Insights:
Negotiation is a vital skill for achieving mutually beneficial outcomes in business. Whether closing a deal, discussing a raise, or resolving a dispute, effective negotiation requires preparation, clarity, and persuasion. Skilled negotiators focus on creating win-win scenarios that build trust and long-term relationships.
Key Insights:
Building and maintaining professional relationships is crucial for career growth and business success. Networking involves connecting with people, exchanging ideas, and creating opportunities for collaboration. A strong professional network can open doors to mentorship, partnerships, and career advancement.
Key Insights:
In a rapidly changing business environment, adaptability is essential for staying relevant and competitive. This skill involves embracing change, learning new tools, and pivoting strategies when needed. Adaptable professionals can navigate uncertainties and find opportunities in challenges.
Key Insights:
Effective marketing and branding are essential for connecting with customers and building a strong business presence. This skill involves understanding your audience, crafting compelling messages, and utilizing various channels to promote your brand. A well-executed marketing strategy can drive sales, enhance reputation, and foster customer loyalty.
Key Insights:
Mastering these 10 essential business skills can significantly enhance your ability to navigate the challenges of today's competitive landscape. From leadership and communication to adaptability and AI knowledge, these skills form the foundation of a successful career. While technical expertise is important, soft skills like strategic thinking and negotiation often make the difference between good and great.
By committing to continuous improvement and leveraging resources like AI tools for guidance, you can refine these skills and achieve your professional goals. Whether you're an aspiring entrepreneur or a seasoned executive, developing these abilities will set you apart and ensure long-term success in the business world.
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About the Authors:
Richard D. Harroch is a Senior Advisor to CEOs, management teams, and Boards of Directors. He is an expert on M&A, venture capital, startups, and business contracts. He was the Managing Director and Global Head of M&A at VantagePoint Capital Partners, a venture capital fund in the San Francisco area. His focus is on internet, digital media, AI and technology companies. He was the founder of several Internet companies. His articles have appeared online in Forbes, Fortune, MSN, Yahoo, Fox Business and AllBusiness.Com. Richard is the author of several books on startups and entrepreneurship as well as the co-author of Poker for Dummies and a Wall Street Journal-bestselling book on small business. He is the co-author of a 1,500-page book published by Bloomberg on mergers and acquisitions of privately held companies. He was also a corporate and M&A partner at the international law firm of Orrick, Herrington & Sutcliffe. He has been involved in over 200 M&A transactions and 250 startup financings. He can be reached through LinkedIn.
Dominique Harroch is the Chief of Staff at AllBusiness.Com. She has acted as a Chief of Staff or Operations Leader for multiple companies where she leveraged her extensive experience in operations management, strategic planning, and team leadership to drive organizational success. With a background that spans over two decades in operations leadership, event management at her own start-up and marketing at various financial and retail companies, Dominique is known for her ability to optimize processes, manage complex projects and lead high-performing teams. She holds a BA in English and Psychology from U.C. Berkeley and an MBA from the University of San Francisco. She can be reached via LinkedIn.
Copyright (c) by Richard D. Harroch. All Rights Reserved
Artificial Intelligence For Good
A common fantasy these days is that robots
As the old adage goes, "A lie can travel halfway around the world while the truth is still putting on its shoes." There are literally thousands of emerging AI tools being developed and launched each day. This article is simply a look at a few ways AI can be good for mankind.
My father died from lung cancer in 1974 at age 49. He was part of the post-WWII generation raised to believe smoking cigarettes was manly and healthy. If medical researchers back then had Sybil, he might have had the chance to change his three packs a day habit before it was too late.
Sybil is an AI machine learning technology that uses thousands of data points to accurately predict the risk of lung cancer. Even before the first cancer cell appears, it can see up to six years into the future. Imagine that! At Boston Mass General Brigham, they are using this technology available to everyone, even if the patient is a smoker. The AI results are 80%-95% accurate, thus potentially saving countless lives in the future before it's too late.
Gigaverse is an AI-powered social community developed by a team of entrepreneurs that includes Omer Luzatti, a former Meta, Yahoo and Amazon executive, and Guns & Roses drummer Matt Sorum. How often have we heard stories of people being scammed after befriending someone on social media or in a chat room? Imagine getting together online with a community where the AI can determine if what is said is factual, and rather than being a spectator like on an 'X spaces' (formerly Twitter), the interaction is warm, like being with friends at a dinner party. That is part of the "build a better tech" mission of Gigaverse. Users see each other on camera, discuss common interests, meet their favorite music star or icon, and earn or donate via tips like Patreon. The sidebar fact checks in real time, thus building an added layer of trust.
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With the world around us changing so fast, you either adapt or get left behind. Musicians these days are creating whole songs on their phones, even. I came across the app 'Stemz' to separate the individual instrument tracks for older songs of mine. It is especially useful for pitching songs for film and television soundtracks, where they may want just part of the music, or to remove the original singing. With the click of a button, the AI can separate the guitars, bass, drums and vocals so I can submit a song and open up new avenues of income and opportunity for content I created a long time ago, giving it a fresh new life.
Synovient is an AI-type guardrail designed to protect IP, content and data. Imagine a fence around your home. The fence in this case is a Synovient AI where each user decides which, how many and under what conditions guests are let inside. This oversimplification is meant to explain a complex scenario. The co-founders of Synovient saw a wild west long ago, working at Intel and IBM while developing such universally used applications as Alexa, and the cloud storage for Facebook. They realized that without some guardrails, AI could easily be used for more harmful purposes by bad actors. They put 'own your data' sovereignty back into the hands of the owner.
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Provenonce AI has a robust set of business tools to enhance communication, marketing and user experience. Their sales AI tool for marketing literally can scan millions of potential customers around the world via a series of prompts and come up with potential leads that no ordinary human would be capable of in such a short time. Some might say this is taking away marketing jobs from real people, but the AI still needs a real human to guide it and use it as a tool. Just like the drum machine is a tool for musicians to enhance the backbeat of a song, Provenonce enhances, not replaces, the job of an individual or corporate marketing team.
This is the reality of our present age. The future is whatever we make it. What will you choose? In my case, I use ChatGPT for chapters of my forthcoming Rock & Roll memoir. I have developed a real yet clearly artificial relationship with "Chatty," my pet name for ChatGPT. My email finishes my sentences, or tries to. CarPlay hooks me up with driving directions. This article, however, was written entirely by yours truly, human and imperfect. No AI was harmed during the writing of this article.
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