CGI Inc. (NYSE:GIB) Q1 2023 Earnings Call Transcript

George Schindler: Yes. No, for sure that the combining some of that SI&C into the managed services deals to give our clients the best balance, which is what I talked about in the opening remarks, we’re definitely seeing some of that. The IP is also generating new clients. I’ve mentioned we’ve been investing in go-to-market. Our IP has been a little more locked within the geography that was created. And so, part of the rationale for creating that global IP group and deploying resources towards that was to kind of strengthen that model. That’s generating some new clients for the existing IP. And so, I think it’s a combination of factors that’s driving that.

Robert Young: Last one for me, just high level, can you remind us about your exposure to AI? How it runs the business? How you participate in that just given all of the news flow around that?

George Schindler: Yeah, a lot of discussion about that. I’ll tell you two things. One, our clients in general are pretty cautious on deploying it for all the right reasons. But having said that, what we have the advantage of is we have our intellectual property, right? So we’ve got a couple of hundred solutions. We’ve got software engineering labs associated with that. That’s kind of our R&D lab for this. And so, we’re introducing AI and researching where it applies, how can it be used responsibly into the solutions on IP. And then when our clients are ready for that in a more full scale way, we’ll be right there for them.

Operator: Your next question comes from Richard Tse from National Bank Financial.

Richard Tse: Actually, it’s a bit of a follow-up to Rob’s question on AI. Like, when you look at different technologies, not specific to AI, but there’s a lot of different things that are happening, how does CGI select those opportunities to pursue when it comes to making capital allocation decisions?

George Schindler: We have a framework, intellectual property management framework. Actually, I chair that, along with the presidents of each of our operating units. But as part of that we also have a way to bring new ideas to kind of fast track, it’s a combination of some. There’s a pool of money where there’s some CGI money and then some local money that goes into that. And then, as that looks like something that could scale, it’s then brought to that IP management framework. And when I say IP, some of that is business solutions, but some of that can be accelerator, some of that can be technology solutions as well. That’s a good way for us to do that type of work. The other is part of our lab that you always hear me say, innovation happens at the shop floor.

And innovation for us is working with our clients. Sometimes we do that in conjunction with our clients as they look at leveraging new technology. And that’s one of the reasons we have what we call emerging technology units that work across geographies, so that we can bring that to our clients. So it’s a combination of those factors that allows us to leverage new technology.