From Silicon Valley to Toronto: Why AI Investments Are Heating Up

Artificial intelligence didn’t pop up overnight, but now that it’s here, it’s here to stay. So, these are two stocks I would consider right now.

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This week, ChatGPT announced that for the first time it has topped an average of 100 million users per week. That’s 100 million people each and every week using the service to do everything from code a program, to plan a baby shower (guilty).

As artificial intelligence continues to remain top of mind, let’s explore what’s caused this mass move towards it in the first place?

It wasn’t overnight

Years ago if you were to come to the Motley Fool’s website, an advertisement would pop up. It would state how the future is investing in artificial intelligence stocks, and provide a research report. Many investors may have waved this off as something far in the future. Yet now, as you know, that future is here. And, of course, Motley Fool researchers were right (again).

It’s pretty clear why businesses and individuals alike would be interested in investing in artificial intelligence. While the groundwork and set up can be laborious, it creates an incredible method of creating strong benefits.

So now, let’s look at some of these benefits that investors should be considering.

What businesses can gain

Besides those codes and baby shower plans, artificial intelligence can be integrated into businesses for a variety of uses. It can increase productivity and efficiency, creating automated programs for some of the more repetitive and time-consuming work. This leaves humans to do the more creative work.

Artificial intelligence has also been rolled out as a support for customer service. Most of the basic needs can be met by a chatbot these days, helping to identify problems and give relevant support. It can also be used to help identify new market opportunities, develop new products and services, or even improve ones that already exist.

Now what about AI usage going forward? If you’re not into artificial intelligence, large businesses may fear they’re falling behind. By adopting it early on then, businesses can get a huge advantage over rivals.

Think big

So what if you’re looking to invest in artificial intelligence? For me, I would look to companies that have already rolled this out in a massive way. Those companies I would consider then in Canada are OpenText (TSX:OTEX) and Kinaxis (TSX:KXS).

While OpenText stock only just announced the roll out of its artificial intelligence programs, dubbed “Aviators,” it has a strong history in the software sector. The company has used artificial intelligence to create a simplified approach to pretty much everything it does.

Whether it’s creating a document to send out to clients, fixing code, or tracking shipments, its artificial intelligence programs can do it all. And with enormous clients backing the company, and a long history of growth in the software sector, it’s certainly one of the best artificial intelligence stocks I’d consider these days.

As for Kinaxis stock, it’s been using artificial intelligence for years. This comes through its “Rapid Response” program. It’s exactly how it sounds, with the supply-chain management company using artificial intelligence to identify and find a solution to company problems. Not only that, it can identify potential problems for the future, even before they happen.

With that in mind, Kinaxis stock is another strong option. Especially with the need to improve supply-chain management continuously on our minds. So if you’re looking to invest in artificial intelligence, these are the two I would consider right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Kinaxis. The Motley Fool recommends Kinaxis. The Motley Fool has a disclosure policy.

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