Until a few weeks ago, ChatGPT was all everyone talked about and is still a hot topic in tech stock news. Even though it wasn’t the first artificial intelligence (AI) tool made available to the public, it is perhaps the first one that gave the general public a glimpse into AI’s potential, and it’s scary. What’s scarier is that many experts believe that ChatGPT has just scratched the surface of what AI can do.
It’s important to understand that, however, the “hype” may look comparable to non0fungible tokens (NFTs) and crypto during their glory days. Comparing AI (even from an investment perspective) to NFTs would be wrong on multiple levels. Not only do AI tools have real-world applications, but AI may also start influencing corporate success and accelerating obsoletion by the end of this decade.
You may not be able to invest in OpenAI, the company behind ChatGPT, but several Canadian tech companies have a good AI arrow in their quiver.
An information management company
Thanks to its reliance on data, Open Text (TSX: OTEX) directly overlaps with AI. Data is used for training Machine Learning (ML) models and, consequently, ML systems used to create AI products. Since Open Text has been working on Information Management Systems for corporations for several years, it’s well positioned to leverage the power of AI.
OpenText™ AI & Analytics is part of the company’s portfolio that powers an underlying set of solutions, including Business Intelligence (BI) and data mining.
The company may launch its AI tools separately in the future, but even if it doesn’t, the early-bird advantage, thanks to access to a wealth of data, makes Open Text a strong candidate for AI-fueled growth. It’s already quite attractive as a stock since it offers a healthy combination of dividends and capital-appreciation potential.
A capital investment-planning company
Copperleaf Technologies (TSX: CPLF) is among the small-cap stocks currently trading on the TSX that offers asset and portfolio management services (among others). It also offers tailored solutions to a select set of industries and helps them find financial value and ESG (environmental, social, and governance) value in potential investments.
Many of the company’s solutions and consultancy services rely upon AI-based decision-making. There is a limited amount of information on how mature the underlying AI system is, and the stock is relatively new, so there is no performance data as well. However, it may shoot up if the stock gets picked up with other AI-related businesses and gets more exposure. Buying now would give you an early-bird advantage.
A reservoir simulation company
Computer Modelling Group (TSX: CMG) almost exclusively caters to one sector: energy. Its reservoir simulations allow energy companies to make informed decisions, develop complex strategies regarding extraction, and run cost-benefit analyses on different prospects. The company has now started to augment its services with AI and also has an early-bird advantage.
Autotune-AI is the first performance enhancement solution for reservoir simulation and significantly improves the analysis speed. In addition, one of the company’s software, CMOST-AI, helps its clients augment AI with their decision-making process.
There is a decent probability that these AI tools will help this company improve its services significantly enough and bring down the overhead costs. Higher profits may also become a catalyst for growth in addition to its AI-oriented attraction.
Foolish takeaway
It’s highly unlikely that any of the three tech companies will make waves on par with ChatGPT with their AI tools. However, the tools can give them a significant enough edge over their competitors to draw more investor attraction. This may result in more organic growth than what a mere hype train might offer.
