Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
Peter Hodson: AI can be an excellent tool to quickly learn about a company but it won’t replace fundamental analysis
You can save this article by registering for free here. Or sign-in if you have an account.
You might as well face it: Artificial intelligence (AI) is coming at you, whether you are ready for it or not. In the investment world, we have had “robo-brokers” for some time now. But with AI advancements, it is becoming much easier to screen stock ideas and learn about companies.
Subscribe now to read the latest news in your city and across Canada.
Subscribe now to read the latest news in your city and across Canada.
Create an account or sign in to continue with your reading experience.
Create an account or sign in to continue with your reading experience.
At 5i Research, we are using AI much more often, for basic as well as complex tasks. It can be a great complement to our data feeds from companies such as Bloomberg LP and Refinitiv Ltd. AI can be an excellent tool to quickly learn about a company but it won’t replace fundamental analysis. The investment world is still very much an art as well as science. For instance, AI is not likely to be too helpful in capturing sudden investment sentiment changes. Also, AI chatbots are currently known to hallucinate facts, misinterpret data, not be up to date and jump to conclusions, so cross-referencing with legitimate sources of information is critical.
Let’s look at five prompts you can use in your AI chatbot in order to better understand companies. In each case, we will run a well-known public company through the test and give you a brief summary of what the robot had to say, as well as our assessment of its response. While there are several chatbots available, we used Perplexity AI Inc.’s.
Canada’s best source for investing news, analysis and insight.
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
A welcome email is on its way. If you don’t see it, please check your junk folder.
The next issue of Investor will soon be in your inbox.
We encountered an issue signing you up. Please try again
Interested in more newsletters? Browse here.
Many investors ignore investment risks. But there are always risks. Investors can prompt AI to highlight controversies, red flags, a short sell thesis, executive misbehaviour and past failures. We ran Alphabet Inc. (GOOG) through this prompt and got this response (summarized): “GOOG has a heavy dependence on advertising (Search, YouTube, Network), meaning revenues are tied to macro cycles and ad budgets; advertising still represents the large majority of Alphabet’s total revenue mix. A downturn in digital ad spending, increased ad blocking or shifts toward competing platforms (e.g. TikTok Inc., Amazon.com Inc. ads) could pressure both growth and margins despite diversification into cloud and other bets.” This information seems to us as accurate, though not exactly new information.
Like an MBA course, this AI prompt is designed to provide you with the company’s strengths and weaknesses, and opportunities. We ran Shopify Inc. through the chatbot and got this: “Shopify’s moat is built around an integrated commerce platform with high switching costs, strong brand and a large partner ecosystem, but it faces intense competition from other e‑commerce platforms and large marketplaces, and regulatory and macro risks. For an investor the moat is real but not unassailable, and it must be defended with ongoing product innovation and ecosystem investment.” This answer makes sense, and the point about Shopify needing to defend its turf is a valid one, and a risk if it fails in this task.
With this prompt we are looking at growth drivers, concerns, cyclical worries and risks. We used Cameco Corp. for this prompt and AI told us this: “Cameco operates in the uranium mining and nuclear fuel industry, where the medium‑ to long‑term outlook is structurally positive, driven by growing global nuclear capacity and an emerging uranium supply deficit. Global nuclear capacity is projected to rise from about 395 GW in 2024 to roughly 494 GW by 2035 as countries seek low‑carbon dispatchable power and energy security.” This response is accurate, but again not exactly revealing much that a basic review of the sector wouldn’t come up with.
We would take results from this prompt with a grain of salt. This is one area where you don’t want the robots guessing, or hallucinating. Nothing, we think, is going to beat cold, hard analysis of a company’s financials, including reading all of the financial notes. Still, this prompt can help set the tone for further analysis. We used Coreweave Inc. for this prompt, as many investors have expressed concern about the company’s debt levels. AI told us this: “Free cash flow is sharply negative, with a free‑cash‑flow margin worse than negative 300 per cent, reflecting heavy investment in data centres and hardware plus working‑capital build. Interest expense is substantial, approaching US$1 billion (US$990 million in the first three quarters of 2025).” The AI bot we think nailed its response on Coreweave. Outlining the significant financial risk is a key point, especially for investors who may be late to the AI/datacentre party.
This prompt helps investors ascertain risks that may not be so noticeable when looking at the company itself. Often, investors will find a great company but it is the wrong time for that industry. This prompt at least will outline a company’s overall sensitivity to various factors. For this prompt, we chose Canadian National Railway Co. (CN Rail) as our test subject: “CN Rail shows high sensitivity to macroeconomic factors due to its reliance on freight volumes tied to industrial activity, trade and commodities. External pressures such as interest rates, inflation, regulation and oil prices directly influence its operations, costs and financial performance.” This response is fine, but anyone with a basic knowledge of the rail industry is not going to get much new here.
There are dozens of prompts you could use to investigate a possible investment. These are just a sampling but show how AI can be a useful tool in analyzing a company. We would keep in mind, of course, that everyone has access to this information, and every single trade, ever, has had an equal and opposing viewpoint. But since most individual investors do very little actual research we think AI can certainly help, at least in letting investors know what they might be getting into.
Peter Hodson, CFA, is founder of 5i Research Inc., an independent investment research network helping do-it-yourself investors reach their investment goals. He is also portfolio manager for the i2i Long/Short U.S. Equity Fund. (5i Research staff do not own Canadian stocks. i2i Long/Short Fund may own non-Canadian stocks mentioned.)
If you like this story, sign up for the FP Investor Newsletter.
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
365 Bloor Street East, Toronto, Ontario, M4W 3L4
© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.
This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.
You can manage saved articles in your account.
and save up to 100 articles!
You can manage your saved articles in your account and clicking the X located at the bottom right of the article.
