Workers feel ready for the future, even as it threatens to rearrange their jobs. A Capital One Canada survey of more than 1,000 professionals found that 79% believe their skills will carry them through the next three to five years. Yet 61% of those in technology roles worry their jobs could change as artificial intelligence (AI) spreads.
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Working with AI
Some 51% said their employers were investing mostly or exclusively in technology instead of career development. New workplace tools have increased stress for 43%, rising to 52% among technology professionals. Another 63% reported damage to at least one human element of work.
Susan Zettergren, Capital One Canada’s chief people officer, says businesses need to balance technology with mentorship, leadership training, and education. Investors should notice both sides. Companies are spending on new tools, and the most durable may help skilled people handle more complexity instead of merely promising to replace them.
That creates an opening after the software selloff. A platform tied to essential work can continue to collect recurring revenue while customers modernize. If its data becomes more useful with AI and switching remains painful, a falling share price may reflect valuation compression rather than a crumbling business. One Waterloo company offers that setup.
DSG
Descartes Systems Group (TSX:DSG) provides cloud software for logistics and supply chains. Its Global Logistics Network connects shippers, carriers, retailers, manufacturers, customs brokers, and governments. Customers use it to plan routes, track freight, calculate transportation costs, file customs documents, and screen restricted parties.
Those jobs aren’t optional when goods cross a border. Once a company has connected its partners, workflows, data, and regulatory filings to the network, changing providers can become painfully disruptive. Recurring revenue and high switching costs are two rather lovely ingredients when choosing growth stocks to hold for decades.
Strengthening moat
Descartes stock shows why established software won’t automatically become obsolete. Its network contains logistics, trade, route, and compliance data that can feed AI tools. A chatbot can deliver a confident answer. Moving a container through several borders without an expensive surprise still requires trusted data, specialized knowledge, and embedded systems.
Customers continue to pay for that combination. First-quarter revenue increased 15% year over year to US$193.6 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 20% to US$89.8 million. Services produced 93% of revenue, giving Descartes stock the repeatable base a multi-decade holding needs.
The company is extending its network through acquisitions. In July, it paid approximately US$30 million upfront for Drivin, a last-mile delivery platform that uses machine learning and agentic AI. Drivin adds route optimization, dispatch management, operational data, and a larger Latin American presence. Descartes stock gets another growth engine without attempting a dramatic corporate personality transplant.
So, why the drop?
Descartes stock recently traded near $111, down 26% from its $150.74 52-week high. Its trailing price-to-earnings ratio has fallen to approximately 39 from roughly 63 one year ago. That’s a meaningful reset, although nobody tossed the stock into the clearance aisle.
The remaining premium is the main risk. Slower organic growth, weaker global trade, a disappointing acquisition, or evidence that AI is reducing customers’ willingness to pay could compress the multiple again. Descartes stock also depends on repeatedly buying and integrating specialized businesses, so capital allocation needs to remain unusually disciplined.
I would therefore consider starting a position and adding gradually. Descartes stock has recurring revenue, switching costs, cash generation, AI-ready data, and an acquisition playbook that could keep it among the more durable Canadian growth stocks. Buying in stages leaves room for another wobble without missing the current discount entirely.
Bottom line
The Capital One survey found that one-third of professionals are considering more education or upskilling as technology changes work. That response points toward a future in which capable people use better systems, not one in which software performs every job alone.
Packages will still need routes, freight will still need tracking, and customs paperwork will likely remain an administrative headache. If Descartes stock keeps helping people handle that growing complexity, today’s 26% decline could become a brief markdown on decades of compounding.
