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.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 7, 2023 4:40 am EST

| More on: KXSOTEX

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?

cryptocurrency, crypto, blockchain — Image source: Getty Images

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.