Artificial Intelligence (AI) has come up a lot recently, and not for necessarily good things. While it was first thought to be the way to revolutionize our future and make it easier, it’s now looking a bit more worrisome.
That being said, humans are humans. The fear that technology would somehow take over the world isn’t all that likely, though privacy remains a concern. That is why today, I’m going to be looking at Canadian tech stocks in the AI industry that are doing some real good for our future.
Kinaxis (TSX:KXS) might be the first of the Canadian tech stocks you think of when thinking of AI. The stock is a supply-chain provider. It uses its software-as-a-service (SaaS) in combination with AI to make a smoother experience for its clients.
Kinaxis stock states on its website that the use of AI creates lower costs and frees up time for planners to focus on “solving high-impact problems.” Collecting data also allows to easily compare and make suggestions to create more improvements for clients as well. Furthermore, it can detect problems and set up solutions pretty much in real time.
This has proven quite beneficial in a time when supply-chain demands have only heightened. It’s also likely why Kinaxis stock is doing so well, even as other peers haven’t. Shares of the global company are up over 30% in the last year. It’s therefore provided growth at a time when other companies have fallen. And that looks like it will continue in the years to come.
Another area where AI became useful was through learning. Whether it’s online learning for courses, or for training employees, Docebo (TSX:DCBO) uses AI to power its software as well. Once users start up with Docebo stock, its AI features manage the learning programs to tailor it specifically to the company’s needs.
Basically, it just makes everything easier to set up and easier to adapt. You can learn faster and get yourself and employees working faster, rather than messing around with data and set up. Once you simply decide the content that needs to be added, it takes it from there.
Yet Docebo stock is in a different position these days. The company dropped after earnings results brought in revenue that was hoped to be more impressive, and still posting negative free cash flow. Even so, the company continues to grow, so I would say this might be a good time to jump in after a dip. Shares are still up by 2% in the last year as of writing, after all.
Finally, while the other two tech stocks here are considered quite new, investors can still find tech stocks that offer long-term results. That includes Open Text (TSX:OTEX), which uses AI to help in a similar way to Kinaxis stock. The goal is to collect data and solve issues through their algorithms before they become a real problem.
And this is used on a large scale with companies as large as Alphabet, for example. It allows these businesses to save money, time and problems with a large collection of data to dig deep into. It also helps with data protection, as the collection of data will identify issues in security immediately.
Open Text stock has undergone quite the recovery, up 12% in the last year after falling last fall. Shares are also up 204% in the last decade, with the software company having even more historical performance to look at. So, if you want a tech stock that’s proven it can weather an economic downturn and find more growth, Open Text stock might be your best option.