An old well established and trusted tech brand pivoting to AI that has a high dividend yield is IBM, which has been around for more than a century and is known for both its hardware and software products. 

IBM is investing heavily in AI, cloud computing, and quantum computing, and has recently acquired several AI start-ups, such as Instana, Turbonomic, and Waeg. 

IBM also has a partnership with OpenAI, one of the leading AI research organizations, to provide cloud infrastructure for its AI models.

Investors who love IBM expect the company to grow its earnings by around 10% annually over the next five years. Investors were also impressed with IBM’s dividend yield, which is currently around 4.5%. Dividends are a great way to generate passive income.

IBM is not the only tech company that is pivoting to AI. Google, Microsoft, and Anthropic are competing in the field of generative AI, which can create text, images, music, and more from natural language prompts. 

Integrate generative AI

These companies are attempting to integrate generative AI into their products and services, such as search engines, maps, word processors, office applications, chatbots, and more. Generative AI is seen as a game-changer for many industries and applications, and could potentially disrupt the dominance of Big Tech.

Legacy companies can pivot to a platform model, which is a business strategy that connects producers and consumers of value through a digital interface. Platform companies like Facebook, Amazon, Google, and Tencent have created value at stunning rates, and have grown rapidly and own large market shares. 

IBM mainframe from the 1970’s

Legacy companies can leverage their existing systems, such as customer relationships, data, and brand recognition, to create platforms that offer impressive and immersive products and services. 

Other successful platform pivots are Disney+, which transformed Disney from a media producer to a media platform; Nike+, which connected Nike’s physical products with digital services; and John Deere, which created a platform for precision agriculture.

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