AI Becoming Top Corporate Tech Spending Priority

Apple's (AAPL) hiring of Google's former head of search technology and artificial intelligence is the latest sign that AI is becoming a major battleground for tech companies. Artificial intelligence and machine learning have become "a top 10 spending priority" for corporate chief information officers, Morgan Stanley analyst Katy Huberty said in a note to clients Friday. Apple's recent hiring of AI expert John Giannandrea "reinforces this view," she said. "With the hiring of Mr. Giannandrea, who will report directly to Apple CEO Tim Cook, Apple is telling the world they are aiming to become a more serious player in the AI/machine learning industry," she said. Deployment and evaluations of AI and machine learning systems have steadily increased over the last year, Huberty said.