Kainos has its eye on AI. Here’s why you should buy the dip

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rtificial intelligence is on the march. Take academia: 1 per cent of university research papers published last year had deployed AI chatbots such as ChatGPT, according to a note by broker Shore Capital last week.

The note made a convincing case for how “tuned, domain-specific [AI] models trained with quality, proprietary data” would benefit one software business in particular: Kainos.

This Belfast-based firm started life in 1986 as a joint venture between Fujitsu and Queen’s University Belfast. In recent years, the £1.3 billion business has flourished off the back of heavy government investment in “digital transformation”. It has also reinvested profits to diversify: 39 per cent of revenues now come from overseas.

Kainos has three areas of focus, the largest of which is digital