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.
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.
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.