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Recent breakthroughs in artificial intelligence have the capacity to reshape many industries. Experts are already talking about how AI models can change the way we deliver healthcare, personalize education, and manage finances on a large scale.
Canadian tech stocks are riding the wave, too. Here are the top three AI-adjacent stocks that should be on your radar if you’re trying to bet on innovation in this space.
WELL Health
Vancouver-based healthtech company WELL Health Technologies (TSX:WELL) has delivered tremendous growth by acquiring small and mid-sized startups in the healthcare software space. Acquisitions in virtual healthcare and online pharmacy delivery helped them stay ahead of the curve during the pandemic.
Now, the team is working on AI applications for healthcare services. The company has already rolled out WELL AI Voice, a transcription and voice-assisted data collection service that should help doctors manage their patients data more conveniently.
I believe the company could have more opportunities to either develop or acquire AI-based healthcare apps in the future. This gives them exposure to the emerging revolution.
WELL Health stock trades at a price-to-sales ratio of 1.3 and is on track to deliver revenue growth of up to 25% this year. Keep an eye on this underrated tech stock.
Docebo
AI’s killer feature is personalization and communication. These large language models (LLMs) can sift through a lot of data about a person or subject and concisely explain it in plain language. Which is why industry experts believe generative AI will have plenty of applications in education.
In fact, Khan Academy – a non-profit focused on online education platform – has already rolled out a personalized tutor feature powered by ChatGPT to help students learn.
I believe enterprise training company Docebo (TSX:DCBO) has a similar opportunity. The company claims to have already integrated generative AI to help its corporate clients create presentations and worker training modules. Its recent acquisitions such as Edugo.AI could propel this initiative further.
Investors could expect a bump in sales if any of these new AI experiments lead to better outcomes for corporate clients. The company’s client base is over 3500.
Keep an eye on this one if you’re looking for a Canadian AI stock bet.
Kinaxis
Kinaxis (TSX:KXS) is another company that seems to be uniquely well positioned for the AI revolution. The firm offers supply-chain logistics software. I’m not an expert on this but I believe the software has potential for data analytics and forecasting based on existing supply chain data. That could unlock value for Kinaxis and its customers.
The Ottawa-based tech company has already rolled out its Planning AI analytics platform to customers. If it gains traction, other AI-based tools could be on the horizon.
Kinaxis stock trades at roughly 10 times sales, which is in line with other enterprise software firms. It’s not undervalued or cheap. But KXS is certainly worth a closer look if you’re looking for a stable tech stock to bet on.
