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Since the launch of ChatGPT last November, artificial intelligence has been at the forefront of Wall Street's mind. Investors have poured money into the space, sending shares of AI-related firms such as Nvidia skyrocketing.

But while companies that directly deal with artificial intelligence have so far stolen the spotlight, investors would be wise to not overlook other potential beneficiaries.

For instance, another subset of technology firms that could capitalize on the rise of automation enabled by AI, especially in the near term, includes information technology services vendors.

"With most companies in the early innings of their digital transformations, on a 1-3 year view we see a demand tailwind as companies look to IT Services vendors to help them understand their data landscape and ways to leverage AI," wrote a team of Morgan Stanley analysts in a report from June 19.

They continued: "Therefore, irrespective of the pace of AI advancements and eventual scope for cost and complexity reductions, customers will continue to lean heavily on vendors who can provide informed advice and support."

The analysts noted that in the short term, these benefits are likely to be smaller in impact and limited to early adopters and service vendors that have robust in-house talent, financial resources, and existing customer relationships.

But over the long term, the potential implications of AI adoption are less clear, the analysts said.

"Given the IT industry is constantly changing, what is 'digital' today, will likely prove 'traditional' or 'legacy' in 10 years time, underpinning the view that IT Services vendors are built on change," they wrote. They added that generative artificial intelligence is more likely to revolutionize the world than previous "tech hype cycles" like the metaverse.

Although this may be true, the analysts also noted that information technology firms have traditionally been quick to adapt to and adjust for technological advancements. "While it remains early days and the impact on the total addressable market remains to be seen, we don't expect IT vendors to be disintermediated in the age of AI," the analysts explained.

In fact, it's more likely that AI will prove a long-term tailwind for IT firms by speeding up data services, and the industry as a whole should be able to successfully pivot with minimal disruptions, the team concluded.

Even within the information technology industry, it's clear that not all firms are created equally. The Morgan Stanley analysts currently favor companies that have the capacity to invest in AI at scale and offer services that are more likely to see increased short-term demand and less threatened by disruption, such as consulting.

Additionally, the analysts also recommend focusing on companies that offer higher value-add services, such as digital and cloud offerings, and have a well-documented history of agility when adapting to industry change as more attractive than their peers.

"Demand for engagement will continue to accrue in vendors more focused on consulting, and those who have deeper strategic partnerships with their customers or deeper industry understanding," they explained.

In the report, the analysts identified five information technology companies that are uniquely positioned to become key beneficiaries of rising artificial intelligence adoption. Those five stocks are listed below, along with each company's ticker, market capitalization, and respective analyst commentary.

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5 Stocks Well-Positioned to Reap Rewards of AI: Morgan Stanley - Business Insider