Even if it is not considered to be at the cutting edge of technology, the public sector could be one of the first users of artificial intelligence (AI), believes the boss of the Montreal consulting firm in CGI technology.
“We see governments [in different countries] as possible early adopters [of artificial intelligence],” company president and CEO George D. Schindler said in a conference call Wednesday. with financial analysts. We have good conversations with them and great interest as they have fallen behind. »
This technological delay could encourage governments to want to catch up with AI, believes the leader. “They need it more than other industries. They are probably better able to manage the regulatory environment and public trust due to their size and scope. »
The Quebec company announced earlier this week that it would devote 1 billion over three years to AI. “We have partnerships with customers who want to move from the experimentation phase to full-scale implementation, in a responsible way,” Schindler said.
In Scandinavian countries, CGI is working on an artificial intelligence project that can analyze brain imaging test results, Schindler said as an example. The company also collaborates with a space agency in the United Kingdom to advance environmental research. “The topic of our conversations is broad. We look at the art of the possible. »
CGI reported slightly better-than-expected results for the third quarter ended June 30, as management said demand was resilient despite the economic slowdown.
“Looking ahead to the next few quarters, we believe the economic and political uncertainty will cause customers to step up their efforts to prioritize return on investment in their digitization projects,” Schindler said.
Prior to the earnings release, analysts had expected earnings per share of $1.79 and revenue of $3.63 billion, according to data firm Refinitiv.
The company reports having signed the equivalent of 4.39 billion in contracts, bringing the order book to 25.63 billion.
Analyst Daniel Chan of TD Securities points out that the new business to billing ratio is 121.1%. “CGI continues to deliver strong results in a challenging economic environment. »
Mr. Schindler acknowledged that negotiations before concluding a contract were taking longer, but stressed that the new orders bode well for the results of the coming quarters. “It points to stronger growth in the medium term. »
CGI stock fell $6.11, or 4.51%, to $129.36 on the Toronto Stock Exchange on Wednesday.
