The emergence of ChatGPT and several competing chat bots stirred public interest in the development of artificial intelligence (AI). Some experts and analysts have fully boarded the AI hype train; others are skeptical about how far along the technology, and a handful of pessimists are convinced that AI will spell the doom of humanity.
PricewaterhouseCoopers (PwC) recently projected that AI could contribute up to $15.7 trillion to the global economy by 2030. Moreover, the 22nd chief executive officer (CEO) survey revealed that 84% of Canadian CEOs agreed that AI will significantly change their business within the next five years.
Today, I want to zero in on three tech stocks that are players in Canada’s AI arena.
Shopify is still a top player in the AI space
Shopify (TSX:SHOP) is an Ottawa-based company that provides a commerce platform and services in Canada, the United States, Europe, and around the world. This tech stock was one of the biggest Canadian success stories in the sector since its debut on North American markets in 2015. Its shares peaked in November 2021 but suffered a steady decline in the face of turbulence for the broader sector in 2022.
This company has utilized AI to power its platform for years. Merchants rely on the resources that Shopify offers, and many of the tools that allow them to connect to their customers are AI powered. For example, the company unveiled Shopify Magic back in July 2023. This suite of AI-enabled features is integrated across Shopify’s products and workflows, making it easier for merchants to start, run, and grow their businesses.
This company has established Canada as a leader in supply chain software solutions
Kinaxis (TSX:KXS) is also based in Ottawa and provides cloud-based subscription software solutions for supply chain operations in Canada, the United States, and worldwide. This company has won contracts with top international firms like Ford, Toyota Motors, Unilever, and Sandoz. Shares of this tech stock also broke new ground in late 2021, only to succumb to the broader tech selloff in the subsequent year.
Companies around the world saw supply chains disrupted during and immediately following the COVID-19 pandemic. Kinaxis utilizes AI and machine learning to refine its supply chain RapidResponse software. As it states on its website, “Machine learning and always-on analytics ensure your supply chain is always learning to be more efficient.”
CGI is making a $1 billion push into AI
CGI Group (TSX:GIB.A) is a Montreal-based company that provides information technology (IT) and business process services throughout Canada, Europe, Australia, and elsewhere around the world. This tech stock has been one of the top performers in its sector since it was hit by the spring slump in 2022.
In the third quarter (Q3) of fiscal 2023, this company delivered revenue growth of 11% to $3.62 billion. Meanwhile, diluted earnings per share (EPS) rose 15% to $1.75. CGI Group offers several services in the AI space, including AI design and build services. These services seek to evaluate AI use cases for a specific organization, validate those use cases from a proof of value to a minimum value product (MVP), and scale successful MVPs to enterprise scale and production.
Here’s another tech giant that is betting big on AI development
Open Text (TSX:OTEX) is the fourth and final tech stock in the AI space in Canada that I want to zero in on today. This Waterloo-based company provides information management software and solutions. Shares of this tech stock have also delivered strong results over the past year.
This company has sought to utilize its huge stable of acquisitions to cast a wide net in AI development. For example, the Open Text Content Aviator aims to further modernize workplaces with the use of intelligent AI. Indeed, we have already seen the potential of AI chatbots to quickly and efficiently script press releases, emails, and other crucial yet time-consuming workplace communications.
