According to an MIT report, 95% of AI pilot programs fail to achieve rapid revenue acceleration. The research, conducted on 150 interviews with leaders, a survey of 350 employees, and an analysis of 300 public AI deployments, demonstrates how generative AI is failing to hold its promise for enterprises.
“Some large companies’ pilots and younger startups are really excelling with generative AI. Startups led by 19- or 20-year-olds, for example, “have seen revenues jump from zero to $20 million in a year,” he said. “It’s because they pick one pain point, execute well, and partner smartly with companies who use their tools.”
– Aditya Challapally, lead author of the report, and a research contributor to project NANDA at MIT.
5% of startups pick a painpoint and manage to execute it well. However, generative AI is falling short for the rest of the AI startups, largely because a “learning gap” exists for both tools and organizations. While generic tools such as ChatGPT may work for individuals, it was found that enterprises thrive better from purchasing AI tools from specialized vendors and building partnerships.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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10. BigBear.ai Holdings, Inc. (NYSE:BBAI)
Number of Hedge Fund Holders: 17
BigBear.ai Holdings, Inc. (NYSE:BBAI) ) is one of the 10 Trending AI Stocks on Wall Street. On August 20, the company announced that it has entered a multi-year partnership with the Washington Commanders under which BigBear.ai will become the naming rights partner for the Commanders’ training facility in Ashburn, Virginia. This facility is now named the BigBear.ai Performance Center.
BigBear.ai’s brand will be showcased across the fifth-floor suite level of the Northwest Stadium, as well as at suites entrances to the stadium, team’s practice jerseys, and other key assets. The company will also explore additional opportunities to demonstrate its technology and expertise to enhance fan experiences.
“BigBear.ai is going on offense, and this partnership exemplifies our strategy. We’re stepping onto the national stage with one of the NFL’s most recognized franchises – an organization that shares our deep dedication to innovation and excellence. Our partnership marks the first in a series of decisive moves we are taking to strengthen our position and unlock the next chapter of growth.”
-Kevin McAleenan, CEO of BigBear.ai.
BigBear.ai Holdings, Inc. (NYSE:BBAI) is an artificial intelligence specialist that provides decision intelligence solutions for national security, digital identity, supply chain and logistics, enterprise operations, and manned-unmanned teaming in autonomous systems.
9. 8×8, Inc. (NASDAQ:EGHT)
Number of Hedge Fund Holders: 18
8×8, Inc. (NASDAQ:EGHT) is one of the 10 Trending AI Stocks on Wall Street. On August 21, the company announced new innovations across the 8×8 Platform for CX. The updates will enable enterprises to work more efficiently, respond faster, and deliver personalized experiences that boost loyalty and business growth.
Some of the key enhancements include 8×8 Contact Center integration with MNET CoreAccess+ for secure and real-time access to financial services data, keyword filtering to safeguard SMS compliance and avoid 10DLC violations; 8×8 Smart Assist + Conversation Intelligence to improve agent productivity, and AI-powered chat summarization for multilingual teams.
The company has also introduced CRM Integration Profiles that admins can leverage to customize workflows across Salesforce, Microsoft Dynamics, Zendesk, NetSuite, and Zoho for efficient operations and faster onboarding.
Finally, the JourneyAPI allows organizations to track every aspect of a customer interaction, helping them assess service quality and access unified performance metrics.
“CX leaders are being asked to do more with less – move faster, stay compliant, and deliver seamless experiences at every touchpoint. These new capabilities are built for that reality. From smarter automation to tighter compliance and deeper visibility, we’re helping customers bridge the gap between rising expectations and what teams can deliver – without adding complexity.”
-Hunter Middleton, Chief Product Officer at 8×8, Inc.
8×8, Inc. (NASDAQ:EGHT) is an integrated Platform that provides enterprise communications solutions.