Examining 5 Small Cap AI Stocks: Are They Still Worth Investing In?
Podcast Overview: Episode #458 of the Zacks Market Edge Podcast features host Tracey Ryniec and guest Mark Zinski discussing five small cap companies involved in AI, analyzing their performance and potential as investment opportunities.
Company Highlights: The companies discussed include Autoscope Technologies, Duos Technologies, FiscalNote Holdings, TSS, Inc., and Innodata, each with varying market caps, stock performances, and Zacks rankings, indicating a mix of potential buying opportunities and caution for investors.
Market Trends: The podcast addresses the recent "AI stock fatigue" and the potential for a new wave of AI companies to emerge, suggesting that early investors could benefit significantly from the next phase of AI growth.
Investment Recommendations: Zacks Investment Research offers insights into under-the-radar companies poised for growth in the AI sector, encouraging listeners to consider these stocks for their investment portfolios.
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- Market Expansion Plan: FiscalNote Holdings, Inc. announced a major expansion into the political prediction market by launching a preview experience at PoliticalPredictions.com, aiming to leverage its AI capabilities and extensive datasets to capture this rapidly growing market opportunity, despite facing broader market headwinds.
- Strategic Advisor Appointment: The company appointed Dr. Laila Mintas as a strategic advisor, who brings over 20 years of experience in prediction market design and regulation, further strengthening FiscalNote's competitive position in this new venture.
- Collaboration Agreement Signed: FiscalNote signed a non-binding MOU with AI-driven prediction platform 365Prediction to collaborate on market design, technology, and product development, potentially integrating FiscalNote's policy data, which enhances its market positioning.
- Stock Performance Analysis: FiscalNote shares fell 3.18% to $0.85 in Friday's premarket trading, nearing their 52-week low of $0.80, indicating significant market pressure on the company in the short term.
- Market Expansion: FiscalNote Holdings announced its entry into the political prediction market, with shares dropping 18.57% pre-market to $0.94, indicating a strategic shift aimed at leveraging AI-driven policy and regulatory intelligence to attract a broader audience.
- New Platform Launch: The company introduced a preview experience at PoliticalPredictions.com, expected to help refine forecasting methods and advance market design, signaling its commitment to various future applications that could reshape how political insights are formed and shared.
- Executive Appointment: FiscalNote appointed Dr. Laila Mintas as a strategic advisor for this expansion initiative, highlighting the company's focus on expertise and market design to enhance its competitiveness in this emerging sector.
- Strategic Partnership: The company entered into a non-binding MOU with 365Prediction to form a strategic partnership, further strengthening its influence in the political prediction space and demonstrating its commitment to collaboration and innovation in a rapidly evolving market.
- Successful Migration: FiscalNote has successfully migrated customers from its legacy platform to PolicyNote, marking a significant milestone in the company's product-led growth strategy, which is expected to enhance customer satisfaction and market competitiveness.
- Increased Customer Engagement: The weekly usage rate of PolicyNote has surged by 252%, indicating that the tight integration of AI-generated summaries and analytical tools has significantly improved users' daily workflows.
- Accelerated AI Insights Adoption: Users are generating customized Impact Summaries in 34% of search sessions, showcasing the rapid adoption of AI-powered personalized insights, which further enhances customer responsiveness to policy information.
- Strategic Implications: The CEO of FiscalNote stated that this migration is not just a modernization and consolidation effort but also lays the groundwork for setting the standard in AI-powered policy intelligence, signaling accelerated innovation and long-term growth for the company.

- Database Innovation: FiscalNote's launch of the Epstein Unboxed database consolidates thousands of documents related to the Epstein investigations, leveraging AI technology to enhance information retrieval efficiency, which is expected to significantly improve the workflow of investigative journalists and policymakers.
- Real-Time Update Capability: The platform can process and publish newly released documents within four to eight hours, ensuring users can quickly access the latest information, thereby enhancing public understanding and transparency of complex civic information.
- User-Friendly Design: Epstein Unboxed features advanced search functionality and cross-referencing tools that allow users to easily track connections between documents, enhancing the usability and analytical capabilities of the information, promoting deeper investigations.
- Strategic Positioning: FiscalNote demonstrates its capability in handling large-scale, disorganized government document releases through its unique AI and data infrastructure, further solidifying its leadership in the policy and regulatory intelligence solutions sector.

- Database Integration: FiscalNote's launch of the Epstein Unboxed database consolidates thousands of documents related to the Epstein investigations, utilizing AI technology to achieve structured and searchable formats, significantly enhancing information retrieval efficiency and transparency.
- Real-Time Update Capability: The database can process and publish newly released documents within four to eight hours, ensuring users can quickly access the latest information, thereby supporting the work of investigative journalists and policymakers.
- User-Friendly Interface: Epstein Unboxed features an interactive webpage and advanced search functionalities that allow users to query and analyze documents in real time, facilitating deeper understanding and utilization of information.
- Strategic Significance: Through this initiative, FiscalNote demonstrates its expertise in AI and data infrastructure, aiming to equip the public and decision-makers with better tools to effectively leverage complex civic information.
- Management Participation: FiscalNote's senior management team will participate in the Northland Capital Growth Conference on December 16, 2025, showcasing its leadership in policy and regulatory intelligence solutions, which is expected to attract investor interest.
- Virtual Conference Format: The conference will be held virtually, with FiscalNote hosting investor meetings to ensure interaction and information dissemination, thereby enhancing the company's transparency and market trust.
- Information Access: All related presentations and webcasts will be available in the Events & Presentations section of the FiscalNote investor relations website, facilitating investors' access to the latest information for informed decision-making.
- Industry Leadership: As a leading provider of AI-driven policy and regulatory intelligence solutions since 2013, FiscalNote continuously innovates to help clients effectively manage political and business risks, solidifying its competitive advantage in the global market.





