The race to dominate artificial intelligence (AI) has commenced. Last year, OpenAI released ChatGPT — a platform that uses natural language and machine learning to answer queries with surprising efficiency. Now, several new AI tools have popped up that allow users to generate written content, images, videos and even software code with a simple command.
These new generative AI tools are expected to revolutionize the world and shift our economic model. However, experts believe its most notable impact is likely to be on education and communication. Here are two Canadian stocks that are at the forefront of this trend.
AI stock #1
Docebo (TSX:DCBO) is an enterprise education technology company. Put another way, Docebo provides software tools that help companies build and deploy educational content for their staff. Think about training videos, slideshows about workplace safety and announcements of new features and products. When a corporation wants to communicate with its staff, Docebo is part of the solution.
Now, the company is adopting generative AI to streamline the process of communicating with staff. The company’s AI-based Learning Suite helps its clients build slideshows, create videos, and generate images with simple commands. The suite also includes an AI-powered learning management system, or LMS, that helps companies manage all this training content.
Docebo stock is up 12% year to date but is still 53% lower than its all-time high in 2021. Docebo’s market value has been decimated by the tech bear market. That potentially creates an opportunity for investors looking for exposure to this new technology. Keep an eye on this AI stock.
AI stock #2
Kinaxis (TSX:KXS) is yet another beneficiary of the AI race. The company offers a communications platform that helps global logistics companies interact with each other. The company’s RapidResponse platform helps buyers and sellers flag issues, manage shipments, provide regulatory updates and handle inventory.
It’s a critical part of the global supply chain. Now, AI can automate some of these messages and micro-tasks. Instead of messaging people and waiting for office hours in different time zones, logistics companies can get updates, track statistics, and generate responses to clients automatically with AI.
Kinaxis is also using AI technology to help its clients plan and forecast their business. These tools can use all the proprietary data a client has to create reliable predictions of supply and demand so that the process of shipping goods is more efficient.
The stock is up 16.6% year to date and just 21% lower than its all-time high. The company’s underlying business is thriving. Revenue was up 44% in its most recent quarter while earnings before interest, taxes, depreciation, and amortization was up 87% over the same period.
Kinaxis is an underrated and undervalued tech stock that could benefit from the added efficiency of emerging AI tools. Keep an eye on this opportunity.
