Founded by the Gardner brothers in 1993, The Motley Fool has been dedicated to making the world smarter, happier, and richer. Through their website, podcasts, books, newspaper column, radio show, and premium investing services, they have helped millions of people achieve financial freedom. The Motley Fool considers AI a "key theme" for the year, utilizing numerous AI models for different tasks. While this article presents opinions that may differ from The Motley Fool's Premium Investing Services, becoming a member provides access to top analyst recommendations, in-depth research, and investing resources, among other benefits. Teladoc Health (TDOC 1. 07%) began the year with a focus on enhancing efficiency and advancing towards profitability. So far, it has successfully met or exceeded earnings forecasts in the second quarter and raised its annual guidance range. Notably, Teladoc has also prioritized artificial intelligence (AI) as a means to further improve efficiency. As a leading provider of telemedicine, Teladoc offers integrated care packages to a wide range of companies and organizations, providing services for primary care, specialists, chronic condition management, and mental health. AI plays a critical role in connecting patients with the most suitable providers, using criteria like patient preferences and provider expertise. Teladoc's extensive use of AI models has resulted in improved gross margins and superior patient experiences, enhancing its position in the rapidly growing telemedicine market.

By leveraging AI technology, Teladoc saves time and optimizes resource allocation, ultimately contributing to its bottom line. Additionally, Teladoc recently announced its collaboration with Microsoft's Azure OpenAI platform to automate virtual visit paperwork, further increasing efficiency. While AI may not transform the telemedicine industry overnight, it has proven to streamline processes and personalize patient experiences, resulting in higher margins and increased patient retention. Moreover, AI opens doors for future advancements and opportunities for Teladoc. As an investor, it is essential to evaluate your risk tolerance. While Teladoc may not be suitable for cautious investors seeking profitable pharma companies or medical device makers, those comfortable with some risk may find Teladoc to be an excellent long-term investment. The company has demonstrated its ability to deliver on promises, and AI has the potential to further bolster its earnings in the future. Adria Cimino does not hold any positions in the mentioned stocks, while The Motley Fool discloses positions in and recommends Microsoft and Teladoc Health.