The Globe and Mail reports in its Tuesday, Sept. 23, edition that Constellation Software held a conference call on Monday to assuage investor worries about the impact of artificial intelligence on its business. The Globe's Joe Castaldo writes that president Mark Leonard set up the call after one of Constellation's largest shareholders requested a question-and-answer session about AI.
A serial acquirer of software companies targeting niche sectors, Constellation has a stellar track record, but concerns about the impact of AI have recently dogged its share price, sending it down more than 18 per cent from a high in
May. During a call with investors, Mr. Leonard warned against trying to predict AI's future, noting even expert Geoffrey Hinton struggles with it. He stated, "You and I will never know a tiny fraction about AI" compared with Dr. Hinton. While avoiding predictions, Mr. Leonard highlighted the company's commitment to monitoring and integrating AI developments.
Generative AI tools can efficiently write and test software code, even creating functioning prototypes. This presents a significant opportunity for Constellation to develop software faster and cheaper, though rivals can leverage the same advantage.
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