Canadian artificial intelligence firm Coveo is reporting subscription revenue climbed and losses are ahead of projections as the company preps the launch of its new generative AI product.

The company reported its first quarter results for fiscal year 2024 on Tuesday, which included a year-over-year revenue climb of 15 per cent and operating losses of US$7.6 million.

Coveo also announced a new foray into generative AI with the launch of “Coveo Relevance Generative Answering,” while working with 45 partners for a “cost-effective, unified user experience,” according to a news release.

Louis Tetu, chairman and CEO of Coveo, told BNN Bloomberg on Wednesday the product is not a big leap from its existing software, but rather a continuation of what the company has been working toward.

“This is a natural evolution of our innovation,” he said.

“Coveo is one single platform – software platform – and for us the innovation is incremental. There’s no big bang investment. It is the cumulative work of more than dozen years in AI working with some of the largest datasets of customers in the world.”

Design partners are expected to have access to the product some time in this next quarter, while Coveo expects it to be available more widely later in the fiscal year.

It’s because of this late launch that the new product has not factored in to its revenue projections for the fiscal year.

“The impact of revenue will happen more towards the back half of the year and will have minimal impact,” Tetu said.