Despite the losses of 2021, investors are maintaining a hopeful outlook for 2023. Chief Executive Cathie Wood of Ark Investment Management seems optimistic about her strategy of investing in risky tech businesses with her vivacious optimism and steadfast dedication to growing investor returns at a healthy pace. Moreover, she feels AI could lead to 50% GDP growth within a decade. Therefore, despite the risk, investors should be betting big on AI stocks to buy.

Artificial intelligence (or AI) is quickly becoming the technology of the future, and by 2030, it’s estimated to be a $1.6 trillion industry with the potential to streamline business processes and transform how we access software services. With AI expanding into almost all facets of business recently, its rapid growth can only signal what new advancements it will bring in the years ahead. As these revolutionary changes come about, AI stands to revolutionize our lives in ways we can only imagine. With that in mind, here are three of the best AI stocks in Cathie Wood’s portfolio:

C3.ai (AI)

C3.ai (NYSE:AI) has truly revolutionized the way companies make use of AI. Its cutting-edge software-as-a-service (SAAS) applications give customers the capacity to deploy increasingly sophisticated AI projects at any scale rapidly. Deploying enterprise AI projects gets easier with C3Ai’s assistance, providing businesses with critical inroads into an ultra-competitive international market. The efficiency and scalability provided by C3Ai mean companies can continue to grow, expand, and outpace the competition.

Additionally, C3.ai has recently experienced extraordinary success with the rapid uptake of its solutions among organizations of all sizes across the globe, resulting in 25 new customers and a major $10 million deal in its second quarter of fiscal 2023. Moreover, it has a revenue growth of over 27% for the year. This speaks to the immense value their services bring to the industry and their potential for future impact. C3.ai is strategically shifting its focus from subscription-based deals to consumption-based models, which could prove to be a highly lucrative move for them as it will enable them to build a steady, ever-growing revenue funnel. The prospects certainly look very promising!

UiPath (PATH)

UiPath (NYSE:PATH) has quickly risen as a robotic process automation (RPA) leader, prompting investors to take note of its burgeoning success. The company has developed AI capabilities that now allow it to deliver powerful software solutions sought by businesses of all sizes, from automating manual processes to eliminating mundane tasks. Moreover, as part of a thriving multi-billion dollar market sector, UiPath’s established presence allows it to stand confidently next to comparable competitors. The company brings an innovative outlook and much-needed modernization for companies facing labor shortages or those looking for greener solutions within their daily operations and streamlines the workforce, allowing us all to experience a fully automated world.

Overall, UiPath is well-positioned to reap incredible benefits from an ever-growing market and maintain its impressive upward trajectory for many years. UiPath has been growing at an impressive rate over the past several years, evidenced by its high recurring revenues and net retention rates that have remained consistently above 50%. Even beyond these impressive recent results, analysts predict that RPA is soon to be worth $30.85 billion by 2030, pointing to a massive total addressable market. Thus, it is among the top AI stocks to buy.

Upstart (UPST)

Upstart (NASDAQ:UPST) is revolutionizing lending with its cutting-edge approach to assessing creditworthiness. By leveraging AI and machine learning, the company can analyze applicants’ profiles to determine their scores more accurately and quickly. Of course, rising interest rates mean that Upstart may not be able to approve as many applicants. However, the ones approved are likely to have great credit score potential and a much lower risk of default. It’s a win for both lenders and borrowers.

Moreover, its products and services are unprecedented, its market reach expanded rapidly, and it officially joined the ranks of some of the most successful companies in its niche last year. These numbers were bolstered by amazing profits, which helped propel Upstart even further. Though lately, the business hasn’t been as busy as it once was, Upstart is able to lean on its multiple-sector lending activities to bring stability back into the equation.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.