PayPal says that in an effort to revitalise the payments behemoth, the company is introducing new AI-powered products along with a one-click checkout option.

The news marks the first significant move under Alex Chriss, who joined PayPal in September. The new offerings are another illustration of how businesses are attempting to capitalise on investor excitement over artificial intelligence, which contributed to this month's record highs for US stock markets.

Investors are hoping that Chriss, a former senior executive at Intuit, would help PayPal's stock rebound. The price has down more than 22 percent since January 2023 as a result of disappointing profits. PayPal's CEO, Chriss, has referred to 2024 as a "transition year" and pledged to increase revenue streams outside of transaction volume.

"The data that we have and our ability to actually see what people have bought and know what merchants are trying to target, that's where I think AI is the huge opportunity for us," Chriss says.

PayPal announced that it will launch a platform this year that leverages AI to let retailers reach out to potential customers based on their past purchases. The platform will use data from the over half a trillion dollars in merchant transactions PayPal has handled worldwide.

A different AI-based solution called "smart receipts" would allow merchants to suggest customised products to customers in their email receipts in addition to offering rewards.

Along with new capabilities for Venmo business profiles, PayPal is launching a "one-click" checkout option called Fastlane, which has reportedly increased checkout speeds by almost 40 percent in early testing.

The euphoria surrounding AI that drove technology companies higher prompted the S&P 500 index to close at a record high for the fourth time in as many sessions. On February 7, PayPal releases its fourth-quarter earnings.