AI Ratings

42.cx provides ratings of 11,000+ companies in the field of Artificial Intelligence. They include our comprehensive analytical indicators like AI strength, AI competence, AI focus, AI growth potential, financal health, market momentum, etc. - all benchmarked against their peers and their industry. Our indicators and ratings are being calculated based on a unique proprietary quantitative and qualitative approach, where we combine Big Data analytics and human expert opinions. Similar to S&P, Moody's and Fitch, our rating is a letter grade. For more information, go to Market Intelligence for the AI Asset Class or review our Rating Scale.

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Please note: The AI Ratings are intellectual property of AI-42 Market Intelligence Ltd. and can be used free of charge for non-commercial use under Creative Commons CC BY-NC-NA-SA.

Market Intelligence for the AI Asset Class

The standard approach to industrial economics assumes that innovation is determined principally by firm size and the intensity of market competition. Yet after controlling for the effects of industry-specific conditions, empirical studies have found that the intensity of R&D spending is not statistically influenced by the size of the firm. Furthermore, ex-ante and ex-post market power have been found to explain very little of the inter-industry differences in innovation.

There is a growing awareness that Artificial Intelligence related intellectual property owned by companies can be an important factor in their commercial success. AI-IP provides the technical foundation upon new products and services are built. The ratio of tangible to intangible assets of industry leaders around the world has been seeing a gradual, yet drastic, change over the past four decades. As technological advances began driving innovation, the size and diversity within company asset portfolios began increasing consistently. This dramatic shift is evident in the market capitalization of S&P500 in 2015, which was made up of 87% intangible assets. In 1975, intangible assets only made up less than 20% of the total asset value. In such a situation, where a majority of the investment is in intangible assets, it is only prudent to be employing the best in class techniques for research and benchmarking, to ensure that decisions are based on data of the highest quality.

Over the last two decades, the analysis of company AI-IP has become an increasingly important part of competitive intelligence activities, as well as a key to analyzing national, regional and company technology strength. Implicit in these analysis is the idea that identifying a company’s intellectual asset, specifically those intangible assets that AI-IP protect, is tantamount to identifying areas of strength within a company.

Underpinning the groundswell of interest in the valuation of a company’s AI-IP is the idea that this unseen wealth will eventually enhance shareholder value. Recent discoveries by 42.cx indicate that high-quality AI-IP portfolios are long term predictors of a company’s stock market performance.

Our AI Ratings and the AI-42 INDEX™ have evolved from prior research from the worlds most renowned faculties like Harvard, Cambridge, Oxford, Princeton and many others. 42.cx’s AI Ratings are using a combined quantitative and qualitative rating approach to identify companies with high-quality AI-IP and also companies whose AI-IP the stock market has undervalued. Investing in such companies would have produced impressive results. In the period from 01/2010 up until 07/2019, a conservative portfolio of companies with strong AI-IP would have generated a return of 363.66 %, which is an over-performance of 201.44 % compared to the reference Index S&P 500.

Background research provides a strong rationale for the expectation that companies with strong AI-IP will perform better in the stock market. A method devised to accurately measure the quality of company technology, specifically with the focus on Artificial Intelligence, should therefore have a significant predictive effect on company stock performance. Furthermore, information of this type should be particularly valuable because it is not currently available to market analysts, leading to a strong likelihood that the quality of company technology might not be properly valued in the market.

Current Sector Ratings (Public Companies)

Every quarter, our expert advisory team evaluates sector ratings for public companies, based on most recent developments in the field of Artificial Intelligence. These ratings provide an indication on how much each sector benefits from and is impacted by AI. Similar to S&P, Moody's and Fitch, our rating is a letter grade. For details, see our Rating Scale.

Sector
Rating (as of 30.06.2019)
Change (since 31.03.2019)
CYBERSECURITY AAA    Expert rated
FINANCE A+    Expert rated
HEALTHCARE A+    Expert rated
DEFENSE A+    Expert rated
IT/PLATFORM/ENABLER A+    Expert rated
LARGE CAP BBB    (previously BB-)    Expert rated
SEMICONDUCTOR BBB    Expert rated
CRM BBB    Expert rated
HR/OUTSOURCING BBB    Expert rated
MOBILE/COMMUNICATION BBB    Expert rated

Rating Changes (Public Companies)

Every quarter, our expert advisory team evaluates each public company with Artificial Intelligence competence, analysing the most recent developments. These ratings provide an indication on how focussed the company is on AI ("AI Focus") and how strong its AI competence is ("AI Strength"). Similar to S&P, Moody's and Fitch, our rating is a letter grade. For details, see our Rating Scale.

Symbol
Name
Rating (as of 30.06.2019)
Change (since 31.03.2019)
GOOGL Alphabet Inc. AI Focus: BBB    (previously BB-)    Expert rated
 
AMZB Amazon.com, Inc. AI Focus: BBB
AI Strength: A+
   (previously BB-)
   (previously BBB)
   Expert rated
 
BIDU Baidu, Inc. AI Focus: BBB    (previously BB-)    Expert rated
 
MSFT Microsoft Corporation AI Focus: BBB    (previously BB-)    Expert rated
 
CRM Salesforce.com Inc. AI Focus: BBB    (previously BB-)    Expert rated
 
BTAI BioXcel Therapeutics, Inc. AI Focus: BB-
AI Strength: BB-
   (previously CCC+)
   (previously CCC+)
   Expert rated
 
FB Facebook, Inc. AI Focus: BB-
AI Strength: BB-
   (previously CCC+)
   (previously CCC+)
   Expert rated
 

Rating Scale

Similar to S&P, Moody's and Fitch, a 42.cx rating is a letter grade. The table below shows the specifics for our ratings:

Rating
AI Sector
AI Focus
AI Growth Potential
AI Competence
AAA AI Sector: Highest (Triple A) AI Focus: Highest (Triple A) AI Growth Potential: Highest (Triple A) AI Competence: Highest (Triple A)
AA+
AA
AA-
AI Sector: Very high AI Focus: Very high AI Growth Potential: Very high AI Competence: Very high
A+
A
A-
AI Sector: High AI Focus: High AI Growth Potential: High AI Competence: High
BBB+
BBB
BBB-
AI Sector: Good AI Focus: Good AI Growth Potential: Good AI Competence: Good
BB+
BB
BB-
AI Sector: Average AI Focus: Average AI Growth Potential: Average AI Competence: Average
B+
B
B-
AI Sector: Below average AI Focus: Below average AI Growth Potential: Below average AI Competence: Below average
CCC+
CCC
CCC-
AI Sector: Low AI Focus: Low AI Growth Potential: Low AI Competence: Low
CC
C
AI Sector: Very low AI Focus: Very low AI Growth Potential: Very low AI Competence: Very low
D AI Sector: None AI Focus: None AI Growth Potential: None AI Competence: None

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Competence in Artificial Intelligence

Rigourous systematic.


Daniel Mattes Daniel Mattes Daniel Mattes