1 Under-the-Radar Beneficiary From the Rise of ChatGPT

ChatGPT will benefit AI-enabled stocks like Docebo (TSX:DCBO).

| More on:

Image source: Getty Images.

OpenAI’s ChatGPT, a large language model, has taken the world by storm. Just months after its public release, the artificial intelligence (AI) platform already has 100 million active users. Developers have created new chatbots, business automations, software tools, and even animated movies with the AI-enabled service. 

Now, I believe an under-the-radar Canadian company could benefit from this AI wave by enhancing its services and reducing its costs. Here’s a closer look at how Canadian investors can bet on the future of generative AI. 

Generative AI

ChatGPT’s killer feature is that it can interpret natural language commands and generate responses with plenty of creativity. GPT3.5, the version released last year, was primarily text-based. Users could type out a simple command, like “give me three use cases of Python coding language,” or “write me a short story about Godzilla and the Little Mermaid falling in love,” and it would create a perfect response. 

This week, the OpenAI team released GPT 4, which expands the inputs to audio and visuals. Now, users can enter a funny pic of a cat playing a piano and ask the platform to describe why the photo is funny. 

Meanwhile, other AI platforms such as Synthesia, Stable Diffusion and ElevenLabs apply these AI techniques to generate animated videos, faux human presenters and text-based audio. Put simply, users can now create YouTube videos or entire podcasts with fake AI-generated faces and voices. 

This is the dawn of the generative AI revolution. It promises to make content creation much more productive in the years ahead.  

Canada’s AI stock

Generating content is a key part of the online education sector. That’s why this ongoing generative AI revolution is likely to benefit edutech startup Docebo (TSX:DCBO). The Toronto-based company offers learning management software (LMS) to enterprise clients. Essentially, the platform allows companies to manage all the data, files, and presentations they need to train employees on business processes or best practices. 

Of course, generative AI platforms like Stable Diffusion and ChatGPT could greatly enhance this service. Docebo has already listed its AI-based Learning Suite on the website. Enterprise users can now use Docebo to create new videos for employee training. That saves time and cuts costs of producing corporate training material. 

This new service should boost the company’s earnings or retention in the months ahead. It’s already had a great growth run so far. Docebo’s recurring revenue has expanded at a blistering 52% compounded over the past six years. Over the next five years, the LMS market is expected to grow at an annualized rate of 18.1%. 

Meanwhile, Docebo stock is down, along with the rest of the tech sector. It’s trading at a price-to-sales ratio of just 8.7 — lower than the historical average for software stocks. 

Bottom line

ChatGPT could revolutionize the way we generate online content, and edutech platform Docebo has already embraced AI to enhance its services. The stock could surge, as this AI wave gains momentum. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends Docebo. The Motley Fool has a disclosure policy.

More on Tech Stocks

grow money, wealth build
Tech Stocks

$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

Growth stocks such as Dollarama and Chewy are well poised to deliver outsized gains to long-term investors.

Read more »

online shopping
Tech Stocks

Is Shopify Stock a Buy in March?

Shopify stock has had a volatile run, but fundamentals are strong, and valuations are much lower after its 71% decline.

Read more »

data analyze research
Tech Stocks

2 Top Stocks to Buy in March 2023

Given their solid financials and high-growth prospects, these two stocks are excellent buys right now.

Read more »

Male IT Specialist Holds Laptop and Discusses Work with Female Server Technician. They're Standing in Data Center, Rack Server Cabinet with Cloud Server Icon and Visualization
Tech Stocks

Is Kinaxis Stock a Buy at 52-Week Highs?

Kinaxis stock is up 31% in the last six months, though 5% in the last year. So as the stock…

Read more »

healthcare pharma
Tech Stocks

Should You Buy WELL Health Stock After Q4 Earnings?

Given its solid financials, healthy growth prospects, and attractive valuation, I am bullish on WELL Health.

Read more »

A data center engineer works on a laptop at a server farm.
Tech Stocks

2 Tech Stocks That Could Set You Up for Life

Canadian investors can set themselves up for the future with top tech stocks like Descartes Systems Group Inc. (TSX:DSG).

Read more »

dividends grow over time
Tech Stocks

Got $1,000? Buy These Hot Growth Stocks Before They Take Off

Investors won’t want to miss these buying opportunities. Here are three discounted growth stocks to load up on today.

Read more »

Woman has an idea
Tech Stocks

2 No-Brainer Stocks to Buy With $500 Right Now

Given their solid financials, healthy growth prospects, and attractive valuation, I am bullish on these two TSX stocks.

Read more »