Appian (NASDAQ: APPN) is a cloud software company that provides low-code development platforms for businesses to build and automate their digital workflows. The company is also a leader in the private AI space, offering a unique approach to artificial intelligence that is tailored to the needs of its customers.
Private AI
Appian's private AI solutions are designed to address the concerns of businesses that are hesitant to send their data to third-party providers. These businesses, which include government entities and large banks, deal with sensitive information and have strict regulations governing data usage. They prefer customized AI solutions designed specifically for their needs rather than relying on public AI tools.
Appian's private AI solutions are built on its data fabric technology, which allows the company to assemble large datasets and train private AI algorithms tailored to individual customers. This approach gives businesses the control and security they need to use AI without compromising their data privacy.
Recent Developments
- At the recent Appian World conference, the company unveiled a number of new AI capabilities, including:
- AI Skill Designer, which allows businesses to deploy custom machine learning models
- An OpenAI/ChatGPT generative AI skill extension available on Appian's app marketplace
- Process HQ, an AI product that expedites the deployment of Appian's process mining solution
These new capabilities demonstrate Appian's commitment to providing businesses with the latest AI technology. They also highlight the company's unique approach to private AI, which is tailored to the needs of businesses that are hesitant to send their data to third-party providers.
Financial Performance
Appian's financial performance has been strong in recent quarters. In the first quarter of 2023, the company reported a 31% increase in cloud subscription revenue. Appian also narrowed its adjusted EBITDA loss margin to 13%, demonstrating a commitment to improving its bottom line.
Investment Thesis
Appian is a well-positioned player in the AI market. The company's focus on private AI and its commitment to improving its bottom line make it a compelling investment for investors who are looking for exposure to the AI market.
Risks
The main risk to Appian is the competitive landscape. The AI market is crowded, and there are a number of other companies that are also developing private AI solutions. However, Appian's unique approach to private AI and its strong financial performance give it a competitive advantage.
Overall, Appian is a well-positioned player in the AI market with a compelling investment thesis. Investors who are looking for exposure to the AI market should consider adding Appian to their portfolios.
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