Algorithms, bias and hallucinations: 20 important AI terms investors should know

Generative artificial intelligence has been a hot topic on Wall Street, and in 2024, it may become even more significant. The pressure is mounting on companies to show financial benefits from their AI endeavors. Salesforce and Broadcom are among the many stocks investing heavily in AI initiatives. The “Significant Six” stocks (Microsoft, Meta Platforms, Google parent Alphabet, Amazon, Nvidia, and Apple) are also making big AI investments. To help investors understand the technology, here are 20 artificial intelligence terms explained by experts. Key terms include artificial intelligence, algorithm, model, machine learning, deep learning, neural network, and generative AI. Large language models are being used to power generative AI applications that can write text in various languages, including software code. The training process involves feeding massive amounts of data to the model to find relationships and patterns between words. The connections that the model draws are expressed in the number of parameters, which have been increasing exponentially.