BRUSSELS - CGI (TSX: GIB.A) (NYSE: GIB), a leading global IT and business consulting services firm, has officially signed the European Union's Artificial Intelligence (AI) Act Pledge, aligning with the European Commission's AI Pact. This move underscores the company's dedication to adhering to the highest standards in responsible and ethical AI practices across its global operations.
Jean-Michel Baticle, President and Chief Operating Officer at CGI, emphasized the significance of responsible AI usage as both an ethical necessity and a business imperative. He noted CGI's extensive experience in AI-based solutions and the company's alignment with the objectives set forth in the AI Act Pledge.
CGI's approach to responsible AI involves a comprehensive risk matrix, enforceable guidelines, and ethical principles underpinned by scientific research. The company assists clients in creating "human in the loop" AI strategies, offering support in oversight, governance, risk assessment, privacy, security, and AI model selection.
CGI, founded in 1976, ranks among the world's most prominent independent IT and business consulting services firms. With 90,000 professionals globally, CGI offers a broad range of services from strategic consulting to systems integration and managed services. The firm's fiscal 2023 reported revenue totaled CA$14.30 billion, with shares traded on both the TSX and NYSE.
The information for this article is based on a press release statement.
In other recent news, CGI Federal Inc., a subsidiary of CGI Inc., secured two significant contracts from the U.S. Patent and Trademark Office (USPTO) totaling approximately $119 million. These contracts are aimed at enhancing operational efficiency, maintenance, and security services for the USPTO's global innovation community. In addition, CGI Group (NYSE:GIB) Inc. reported a year-over-year revenue growth of 1.3%, reaching $3.7 billion, with strong bookings at $4.3 billion. The company also announced the initiation of a quarterly dividend of 15 cents per share, set to commence in the first quarter of fiscal year 2025. Canaccord Genuity maintained a positive outlook on CGI Group shares, raising the price target to C$170 from the previous C$155. Furthermore, CGI Group Inc . announced strategic acquisitions and the integration of generative AI into its offerings. These recent developments indicate CGI Group's commitment to its shareholders and its momentum in the IT services landscape.
InvestingPro Insights
As CGI (NYSE: GIB) commits to the European Union's AI Act Pledge, the company's financial health and market performance provide a backdrop to its ethical endeavors. CGI's dedication to responsible AI practices is matched by a robust financial profile, as evidenced by recent data from InvestingPro.
With a market capitalization of $25.79 billion, CGI demonstrates substantial market presence. The company's price-to-earnings (P/E) ratio stands at 21.12, reflecting investor confidence in its earnings potential, and adjusts slightly lower to 19.82 when considering the last twelve months as of Q3 2024. This valuation comes amidst a backdrop of moderate revenue growth of 3.47% over the same period, highlighting a steady financial trajectory.
InvestingPro Tips suggest that CGI is a prominent player in the IT Services industry, operating with a moderate level of debt and cash flows that can sufficiently cover interest payments. This positions the company well for sustainable growth. The company's stock is known for low price volatility, which may appeal to investors seeking stability in their portfolio. Moreover, CGI's management has been actively buying back shares, signaling confidence in the company's future performance. It's noteworthy that analysts predict CGI will be profitable this year, building on a decade of high returns and sustained profitability over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips on CGI, providing deeper insights into the company's financial health and market performance. These tips, along with real-time metrics, are available at: https://www.investing.com/pro/GIB.
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