Q: Would appreciate your assessment of TRI and INTA. These 2 stocks in the professional services sub-sector appear to be accelerating due to AI. Correct me if I am wrong but do you see increasing TAM attributable to improved service to clients and and reduced costs. Would you have high conviction or less so with this idea? How would you rate these or others in the professional services sub-sector.
More generally, are there other industrial sub-sectors where AI is improving client services and reducing costs. Any other names to suggest.
More generally, are there other industrial sub-sectors where AI is improving client services and reducing costs. Any other names to suggest.
5i Research Answer:
Thomson Reuters is likely in a good position from an AI perspecitve as they are a data company and have strong niches in both the tax and legal services areas which are spaces that there are probably some 'easy' AI tools that can be provided to enhance efficiency in these sectors. We do think some monetizable AI powered software tools could be created to srve these areas.
INTA is in a similar type of position, with a bit more of a focus on the financial sector. It looks interesting but the valuation disparity between INTA and TRI is quite different (understanding the businesses are different as well) and INTA would be a bit more of a 'pure play' on this theme.