 Artificial Intelligence isnt just science fiction anymore. The technology is maturing, and AI is allowing machines to take an ever-growing role is more and more sectors of our digital world. Financial services, healthcare, manufacturing, and retail all are being transformed to varying degrees, and as varying paces by AI applications.In retail, AI tech is transforming inventory systems, making it easier for employees to track stock from the backrooms to the shelves. Office environments are changing, too, as AI has smoothed over the transition to mass work-from-home by easing IT support systems. Perhaps the greatest changes are coming in field of language processing, where natural language AI is producing chatbots that sound more and more like human beings. Machine learning is making it possible for the machines to answer questions posed by humans.Its no wonder, then, that stocks involved in developing, using, and marketing AI technology are in many cases showing gains. Using TipRanks database, we pinpointed three that fit the bill. Theyre an interesting lot, spread across a variety of sectors, each with their own approach to artificial intelligence.Lantern Pharma LTRNWe will start with Lantern Pharma, a biotech firm involved in cancer treatment. Lantern is working with AI and machine learning platforms to leverage the highest possible gains from its database of patient information. The company aims to assemble a base of 1 billion data points for analysis in new drug development; a database that size requires the more flexible architecture of AI analysis to find sense in its sheer volume.The reward potential is high, however, as success will allow Lantern to develop more effective cancer treatments on a faster timeline. The company is currently using AI, machine learning, and cloud computing simultaneously with genomic data in an effort to target its research on the most receptive patient populations. The short-term goal is to de-risk and streamline clinical trials, with a long-term goal of identifying the patients most likely to respond to a particular treatment.Like most cutting-edge biotech firms, Lantern operates with a net loss. The most recent quarter saw negative EPS of 31 cents, in line with the year-ago quarters 32 cents. The stock has been trading publicly since June, and in that time has fallen 25.ThinkEquity analyst Ashok Kumar is impressed enough by LTRN to initiate coverage of the stock with a Buy rating and a 25 price target. His target implies an impressive upside potential of 127. To watch Kumars track record, click hereBacking his view, Kumar writes, Together with the rapid advances in big data and AI applications, improved preclinical models will help to accelerate the process of novel drug discovery and refine therapeutic choices, thereby addressing a growing unmet medical need. Lantern RADR Machine Learning Platform, developed using Artificial Neural Network as the primary predictive algorithm, is uniquely positioned to monetize this opportunity.It has been relatively quiet when it comes to other analyst activity. Overall, in the last three months, only 2 analysts have issued ratings. However, as they were both Buys, the word on the Street is that LTRN is a Moderate Buy. Based on the 24.50 average price target, shares could climb nearly 120 higher in the next twelve months. See LTRN stock analysis on TipRanksLivePerson, Inc. LPSNAnd now we move on to the customer service sector, where LivePerson has long been an innovator in direct customer contact and person-to-person chat. The companys chat platforms are used in customer service applications, and are available through mobile devices, social media, and traditional web browsers. LivePerson has, for the last two years, offered a conversational AI to clients, allowing automated chatbots to handle basic communications with help center customers.LivePersons AI chatbots are based on the Conversational Cloud, an application that allows a human agent to oversee multiple AI bots. The system is designed to maximize contact center efficiency, with the AI handling initial contacts and basic filtering questions and the human overseers picking up the more complex issues. LivePersons clients the companies using the chat platforms and chatbots have options to use ready-made AI systems, or to use LivePersons platform to create unique automated conversations.LivePerson saw 291.6 million in revenue for 2019, a 17 year-over-year gain. The revenue gains continued into 1H20, with the most recent quarter showing a forecast-beating 91.6 million. This was up 28 year-over-year. Despite the strong revenues, LPSN operated a net loss in the quarter, although the loss was sequentially smaller than in the first quarter. The stock has strongly outperformed the overall markets in recent months, almost tripling in share price since hitting bottom on March 18.5-star analyst Michael Latimore, of Northland Securities, is impressed by LivePersons growth in recent months. He writes of the stock, In addition to accelerated demand, a price increase on automated interactions could provide a major rev uplift. LPSN has a unique opportunity to provide the conversational commerce platform, leveraging large amounts of proprietary conversational data. Other leading SaaS and CSaaS companies, such as EVBG, FIVN, RNG, and TWLO, trade well into the double digit revenue multiples. The analyst added, The opportunity is large and LPSN is now showing metrics in-line with other leading CSaaS companies, such as 29 revenue growth and 10 EBITDA margins in 2Q. Raising target to 70 from 45 based on about 11x FY21 revenue.To this end, Latimore rates LPSN an Outperform i.e. Buy and his 70 price target suggests room for another 17 growth in the next year. To watch Latimores track record, click hereLivePerson shares are currently selling for 60.98. The stocks average price target is 63.60; recent gains have pushed the share price close to the target, leaving a modest 4 upside potential. See LivePerson stock analysis on TipRanksBooz Allen Hamilton Holding BAHLast on our list is a Beltway Bandit, one of the plethora of consulting firms that inhabit the suburbs of Washington, DC and make their living offering services to the Federal Government. Booz Allen Hamilton specializes in management and information technology, with most of its clients in the government markets: the defense department, the intelligence services, and the civil administration. BAH has been working to combine data science with AI for the past several years, developing systems to make Big Data work effectively and efficiently for its government contract clients. The company has set up an AI-driven process automation system for the Veterans Administration, used to speed up veterans benefits and claims compensations. Last year, BAH launched a scalable AI platform, Modzy, to make machine learning systems more accessible for clients. And more recently, this year, the company has been working with Federal clients to apply AI systems to the general coronavirus response.Government contracting is a lucrative niche, and being able to offer top-notch technology only helps a companys position. BAH, in the past quarter, saw earnings grow 27 sequentially, on 1.96 billion in top line revenues. Covering the stock for William Blair, analyst Louie DiPalma opined: Booz Allen has established itself as the leading provider of government artificial intelligence services ... Booz Allens internally developed Modzy platform has proved to be a tremendous success thus far, and it is still in its very early innings.DiPalmas upbeat comments come with an Outperform i.e. Buy rating on the stock. To watch DiPalmas track record, click hereTo find good ideas for AI stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. 