discoverIE Group PLC (LSE:DSCV) is set to benefit from advances in technology, including the rise of generative AI, as automation in industrial manufacturing becomes increasingly essential, according to a note from Deutsche Bank.
Analysts believe that companies like discoverIE, which specialises in bespoke electronics for industrial markets, could see increased demand as automation processes expand and efficiency becomes a priority across the business services sector.
Beyond industrial automation, Deutsche highlights that other sectors, such as healthcare and data centres, are also experiencing growing demand due to technology advancements.
Companies such as Ashtead Group PLC (LSE:AHT) and Diploma PLC (LSE:DPLM) are already benefiting from rising investments in data centres, while DCC and Diploma are poised to gain from increased spending on preventative healthcare solutions.
The use of proprietary data is expected to be a game changer for companies such as Clarkson PLC (LSE:CKN) and Experian (LSE:EXPN), with early applications of AI and data analytics driving operational efficiency and improving customer service.
While market forces may eventually lead to cost savings being shared with suppliers and customers, companies that effectively leverage AI and proprietary data could see sustainable, long-term benefits.