We recently published a list of Stay Ahead: 9 Key AI News Updates You Need to See. In this article, we are going to take a look at where Okta, Inc. (NASDAQ:OKTA) stands against other key AI news updates you need to see.
A very adaptable tool, generative artificial intelligence has been used in various fields. As a result, it could develop into a general-purpose technology that can evolve into a machine capable of carrying out any task that a human can. Given that the generative AI market is growing at a compound annual growth rate of 34.20%, according to Research and Markets, it has sparked an arms race between companies and, most recently, between countries.
A week into office, President Donald Trump rolled back Biden-era artificial intelligence safety and security measures. The rollback is part of the new administration’s bid to speed and accelerate generative AI development as the US seeks to win the AI race against China.
To maintain global leadership in AI technology, “we must develop AI systems that are free from ideological bias or engineered social agendas,” Trump’s order says.
Trump’s Executive Order overturned President Joe Biden’s 2023 policy, which required AI developers to perform safety testing and report findings to the government prior to releasing systems that could endanger public health, national security, or the economy.
According to the Trump administration, the Biden policy “established unnecessarily burdensome requirements for companies developing and deploying AI that would stifle private sector innovation and threaten American technological leadership.”
Additionally, the Biden executive order demanded that deepfakes be watermarked, that government agencies establish AI testing standards that consider national security threats, and that federal law enforcement and intellectual property regulators change how copyrighted works are used in AI training. The previous administration “hampered the private sector’s ability to innovate in AI by imposing government control over AI development and deployment,” according to Trump’s executive order.
The removal of the safety and security measures is being portrayed as a floodgate, opening for AI development, which could hasten advancements in the still-emerging field but also present risks. Nevertheless, the Consumer Federation of America and Mozilla have written a letter urging the White House to maintain “key rules” for transparency and testing in artificial intelligence.
“Without guardrails like testing and transparency on an AI system before it’s used — guardrails so basic that any engineer should be ashamed to release a product without them — seniors, veterans, and consumers will have their benefits improperly altered and their health endangered,” they wrote. “We call on you to keep key rules about testing and transparency for safety- and rights-impacting AI in place.”
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.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A mobile application developer programming on a tablet, illustrating the power of the company’s adaptive multi-factor authentication.
Okta, Inc. (NASDAQ:OKTA)
Number of Hedge Fund Holders: 47
Okta Inc. (NASDAQ:OKTA) is a technology company that offers Okta’s suite of products and services used to manage and secure identities, such as Single Sign-On, which enables users to access applications in the cloud or on-premises from various devices. The stock has started the year on a roll, rallying by more than 20% as investors take note of the tremendous opportunity up for grabs with the integration of AI-driven features across the company’s Customer Identity Cloud and Workplace Identity Cloud.
The integration of AI features was the catalyst behind the company inking a strategic partnership with the McLaren Formula 1 team on January 28th. While the strategic partnership expands Okta Inc.’s (NASDAQ:OKTA) client base, it also allows the McLaren racing team to leverage AI-powered AI-powered tools to improve its apps and platforms. In order to help McLaren Racing run more safely and effectively, Okta will help the team further simplify its digital infrastructure and enhance security features.
Overall, OKTA ranks 5th on our list of key AI news updates you need to see. As we acknowledge the growth potential of OKTA, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OKTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.