As the world marches towards a future defined by artificial intelligence, the spotlight is increasingly falling on AI companies to watch. In fact, the AI-based chatbot, ChatGPT has been a revelation this year, thrusting society and the investment world toward the immense potential of AI. Not only has it sparked a frenzy of excitement for its word generation capabilities, but it has also shown us how its AI’s utility extends beyond multiple sectors, from healthcare to manufacturing. AI’s potential is so vast, some financial pundits dub it the “next big thing.” With the proliferation of AI, it won’t be long before we see multiple trillion-dollar AI companies to watch.

AI Companies to Watch: Adobe (ADBE)

Adobe (NASDAQ:ADBE) is making its way into the AI sector, with its Firefly generative AI service. So far, this powerful tool can effectively craft an array of unique content from user descriptions, continuing to showcase its potency. It’s no small feat that the platform has already churned out over 70 million images in the first month alone.

Moreover, Adobe’s partnership with Google to integrate the Content Authenticity Initiative’s (CAI) open-source technology into Firefly underscores its commitment to accountability and transparency. CAI already has a whopping 1,000 members and reflects the increasing importance of trust and transparency in digital content production.

Additionally, it continues to advance its Sensei GenAI services, blending generative AI with years of innovation across various fields. The company is committed to developing clean content and models, addressing copyright, diversity, inclusion, and harmful content concerns.

AI Companies to Watch: Baidu (BIDU)

It’s hard to ignore the allure of Baidu (NASDAQ:BIDU) for those looking to wager on long-term AI stocks. It has established itself as a trailblazer in the fusion of AI. In fact, it unveiled its formidable ERNIE Bot, an AI wonder redefining how we interact with machines. This knowledge-enhanced large language model can effectively decipher human intentions, providing responses that mirror the fluency of human conversation. In addition, Baidu’s cloud business hit a major milestone, achieving profitability for the first time in eight years.

AI Companies to Watch: C3.ai (AI)

C3.ai (NYSE:AI) has a robust approach to empowering organizations to embrace AI applications at scale. Its unique AI Suite is a comprehensive toolkit that streamlines the development and implementation of predictive analytics, IoT applications, and other elements in the AI sphere. Moreover, its strategic alliances with tech behemoths such as Google and Amazon have ignited a new sense of optimism. These collaborations have broadened the scope of C3.ai’s offerings enabling seamless access to its Generative AI offerings through the Google Cloud Marketplace and extending its reach via Amazon.CEO Tom Siebel’s vision of a future where enterprise AI applications become ubiquitous over time, and his prediction of a $600 billion addressable market for AI, encapsulates the immense potential of C3.ai.

Oracle (ORCL)

Oracle (NYSE:ORCL) has effectively morphed from a legacy computing company to a modern tech powerhouse, offering various cloud, software development, data management, and business application tools. Its relevance in today’s digital landscape is underscored by its strategic investments in AI, with its AI ecosystem targeting diverse sectors, including finance, healthcare, and retail.

Dipping its toes in the AI sphere, Oracle launched Oracle Cloud AI, a comprehensive platform that empowers businesses with advanced tools for data analysis, natural language processing, and machine learning. This initiative and a collection of AI-powered applications are Oracle’s blueprint for enabling businesses to leverage AI for data-driven decision-making and operational improvements.

In the recent financial quarter, Oracle’s cloud business boasted a staggering $4.1 billion in revenue, marking a 45% increase from the previous year. Even if you remove its noteworthy acquisition of healthcare software company Cerner, it delivered an impressive annual growth of 28%. These figures cement Oracle’s position as a vibrant player in the tech world.

Palantir Technologies (PLTR)

Palantir Technologies (NYSE:PLTR) is basking in the limelight due to its AI-driven progress. This data analytics powerhouse has its roots steeped in the AI realm. Boasting a robust portfolio spanning high-end data analytics to predictive modeling, it can be leveraged using AI technology to deliver significantly better outcomes.

The firm’s recent move into the realm of large language models (LLMs) with its AI-based platform has made waves in the tech world. Its interactive chatbot harnesses the same technology underpinning ChatGPT. Coupled with that is Palantir’s formidable data processing capabilities, which should enable a more refined service to its users. As Ryan Taylor, Palantir’s Chief Business Affairs and Legal Officer, notes, the AI platform is experiencing “unprecedented demand.”

Moreover, Palantir’s solid financial standing lends credence to its long-term growth trajectory. With two consecutive quarters of GAAP net income profitability and a 36% free cash flow margin in its most recent quarter, the firm is moving ahead with considerable aplomb.

JD.com (JD)

Chinese tech titan JD.com (NASDAQ:JD) is looking to upend the retail and finance sectors with its powerful new chatbot, ChatJD. An industrial spin on ChatGPT, ChatJD is designed to revamp eCommerce experiences with high-quality product summaries and insightful financial analysis. By leveraging JD.com’s massive data repository from its eCommerce, payments, and logistics efforts, ChatJD promises a potent solution that sets itself apart from the competition.

The firm’s commitment to pushing the boundaries of AI is undeniable, having bagged the esteemed Wu Wenjun AI Science and Technology Progress Award in March. The launch of ChatJD adds another feather to its cap, reinforcing its incredible growth trajectory. Over the past five years, JD.com has boasted a stunning top-line growth of 25.6%, while its EBITDA has skyrocketed by over 66%, easily outpacing sector averages. Moreover, it’s done well in the current economic climate, posting spectacular profitability numbers.

SentinelOne (S)

SentinelOne (NYSE:S) is a decade-old firm that has been flying under the radar despite its impactful role in cybersecurity. Its pioneering AI-based cybersecurity platform has effectively evolved into a powerhouse in its niche. At the heart of SentinelOne’s tech arsenal is the Singularity XDR Platform, a cybersecurity autopilot that monitors all endpoints in real-time, processing vast volumes of threat signals.

With its mission-critical offering, the firm has generated impressive results over the past several years. In its most recent quarter, its sales skyrocketed by 92% to $126.1 million, and annual recurring revenues grew by 88% to $584.7 million. Moreover, its customer base, now exceeding 10,000, and a dollar-based net revenue retention rate above 130% point to the quality of its offering. Furthermore, it unveiled its foray into generative AI recently, leveraging natural language prompts, enabling users to engage in threat hunting and deep analysis without the need to be cybersecurity experts.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines