3 Top Artificial Intelligence Stocks to Buy in August

The insurance and lending industries are centuries old and have evolved little despite their long histories. These three emerging companies are using artificial intelligence to disrupt these old industries and are trading off their 52-week highs; their stocks offer potential upside that makes these AI stocks worth considering in August. Banks have relied on the Fair Isaac, or FICO, credit score system for decades to determine whether a customer would be able to pay back a loan or not. It is a rigid system that makes it difficult for those with little or no credit history or to get approved for loans, even if they can pay them back. Upstart Holdings (NASDAQ:UPST) uses artificial intelligence to make lending decisions by utilizing many data points that a FICO score doesn't account for, giving lenders using Upstart's technology a more complete picture of a potential borrower's ability to pay.