Research Notes: Crowded Out By AI (Part I)

AI has led a few stocks to soar — and might be keeping many more down

• Our thesis that AI investments are crowding out spending in IT paid off quickly, as Perficient won a buyout.

• But that buyout isn’t necessarily proof of the thesis. Multiple analysts, executives, and vendors see AI as a near-term threat, but the size of that threat isn’t clear.

• As the trend becomes more visible, there will be significant opportunities, both short and long.

• We look at three consulting firms in the context of AI impact; Accenture, Thoughtworks and Endava.