Artificial intelligence (AI) is a new tool for most companies, but not for Lemonade (NYSE: LMND). It has used the technology to transform the insurance industry since 2015, and it's resonating with consumers who are fed up with traditional practices.

Lemonade uses AI to autonomously write quotes, process claims, calculate premiums, and even to determine where it should invest its marketing dollars. The end result is an insurance platform that is both more convenient and cheaper (in many cases) for customers.

The stock is trading 89% below its all-time high set during the tech frenzy in 2021. Its valuation was a little irrational back then, but the company has grown significantly across all metrics ever since. In fact, after it recently reported financial results for the first quarter of 2024, the stock immediately popped 10% in after-hours trading.

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Source Fool.com