There are many inventions and innovations that have practically changed the course of human history and development. The use of fire, the invention of the wheel, the steam engine, and computers have all contributed to the reshaping of human history. The most recent example of this would be the internet, which changed everything from the corporate world and our social lives.
We haven’t yet realized the full potential of artificial intelligence (AI) yet and how it may impact our future, but it may not be a stretch to say that it might have just as enormous an impact on the world (if not more) as the internet had.
Suffice it to say that the internet is not going away, and early adopters might develop an edge. It’s just as true for investors as it is for professionals. Two tech stocks in Canada stand out from the rest when it comes to AI.
A learning platform
Docebo (TSX: DCBO) is a learning suite developed for the corporate segment. It allows businesses to create and disseminate training content and monitor the performance of their employees (learners). Docebo’s platform has been used by over 2,000 recognized brands around the globe.
AI has permeated multiple services offered by the platform. This includes its virtual coach that relies upon AI, deep search features that take context into account, personalized suggestions, and more. It’s a learning platform already using AI on several levels, and the overlap may grow significantly over time.
The stock has (so far) seen a major bullish phase and a long-term corrective phase that it’s still going through. It rose by about 667% from its inception to its peak, partly carried by the momentum of the tech sector during COVID.
The correction has also been brutal, and it’s currently trading at a 60% discount. However, the company is promising both from an AI perspective and because of its business model and the organic growth it has achieved.
An information management company
Open Text (TSX: OTEX) is among the tech companies that have faithfully ridden the 2023 growth momentum of the tech sector. The stock has risen by about 34% since the beginning of the year, which is quite close to the 33% of the tech index. So, if the bull market phase of the sector continues, the stock may continue to follow the pattern.
AI and Analytics are among the core parts of OpenText Cloud, which encompass the bulk of information management services the company offers. It’s also powering its Business Intelligence features.
The long-term growth potential of the stock has been relatively modest for a tech stock but quite consistent. It has risen by about 200% in the last decade and is also one of the few tech stocks that offer dividends.
Foolish takeaway
Pure AI companies are relatively rare in Canada, at least in the publicly traded category. However, AI will most likely become an important part of the business model for a wide array of companies, starting with the tech sector. Early adopters like Docebo and Open Text may also reap its benefits in their regular operations.
