Investors must be able to identify buzzwords and overvalued assets, particularly in the tech sector where there is a greater danger of losing money as the hype dies down. However, much like the internet, artificial intelligence (AI) may prove to be a disruptive force for the economy and financial sector. Early adopters and IT firms positioned to use AI technologies could outperform the market in the years to come.
Given that it thrives on data, information management business Open Text (TSX:OTEX) is well positioned for the rise of AI. The business has unveiled an AI cloud solution that enables companies to examine and understand their unstructured data. Despite the stock’s current overvaluation and discount, it has a strong long-term growth potential and has given investors a return of 184% through price appreciation over the past 10 years. Open Text may see considerable stock price gain as it shifts its focus to AI.
Another tech item that can be enhanced by AI is Docebo (TSX:DCBO), an advanced Learning Management System (LMS). Through an acquisition, the business improved its AI capabilities and established itself as the first Generative AI LMS on the market. Using AI and machine learning techniques, generative AI can produce content in real time. The stock has the potential to double in value and perhaps surpass earlier levels, despite the fact that it is presently trading at a 54% discount to its 2021 peak. if a leader in the field, Docebo will gain if generative AI is used more frequently in education.
As they continue to seek out and seize new opportunities, Open Text and Docebo, two companies that have already incorporated AI into their goods and services, can offer investors the possibility to profit from developments in AI technology.