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CGI Inc. Class A Subordinate Voting Shares (GIB.A $127.63)
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Descartes Systems Group Inc. (The) (DSG $137.63)
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Kinaxis Inc. (KXS $185.82)
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Open Text Corporation (OTEX $50.49)
Q: It is said that AI will decrease the need for software or processes provided by software technology companies. Some fund managers have said that they have reduced their software holdings. Of the companies listed, are any more "immune" to the effects of AI?
5i Research Answer:
We see OTEX as being the most exposed to disruption by AI - parts of document handling and content management that OTEX provides can be streamlined with AI. But OTEX is pivoting to cybersecurity, data governance, and AI-enhanced enterprise platforms, which can be more resilient.
We see DSG as being the least exposed to disruption by AI. DSG's systems are deeply integrated with supply chains, and AI is more likely to enhance its offerings than replace them. We see KXS and GIB.A as being partially immune, but will need to evolve and adopt as the space progresses.