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Best AI Stocks in Australia
By
Will Ellis
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Last Updated on March 14, 2024
Adding new investments to your portfolio is a great way to diversify your investments and check out potential high-performing assets.
With the rise in generative artificial intelligence (AI) across multiple sectors, the artificial intelligence industry is expanding, and it’s no purpose that more Australians want to start investing in AI stocks.
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In this article, you’ll learn about AI stocks on the ASX, and we’ll introduce you to the best ones to invest in the AI market.
Table of Contents:
- What Are Artificial Intelligence Stocks
- Investing in AI Stocks: Benefits and Drawbacks
- Reviews
- 1. Wisetech Global Limited (ASX: WTC)
- 2. Brainchip Holdings Ltd (ASX: BRN)
- 3. Bigtincan Holdings Ltd (ASX: BTH)
- 4. Appen (ASX: APX)
- 5. Dubber (ASX: DUB)
- 6. Unith (ASX: UNT)
- Final Thoughts
- FAQs
What Are Artificial Intelligence Stocks? 🤔️
Before we dive into what AI companies’ stocks are on the market, let’s explore what AI is and how it has become so popular recently. You’ve come to the right place if you’re new to investing in AI and don’t know much about it.
AI typically refers to machines, computers or technology doing tasks that require human intelligence. Previously, computers could learn and recognise patterns to conclude by data collection and training. Now, different types of artificial intelligence and machine learning allow computers and technologies to do more than they have ever been able to before.
There are four types of AI:
- Reactive: Reactive AI is considered the most basic branch of AI. This AI provides a predictable response to the information it receives and can’t learn from previous actions. An example of reactive AI is the spam filters that sort emails.
- Limited memory: Limited memory AI is the most commonly used and most evolved. It can learn from experience and combine it with pre-programmed information to complete challenging tasks. An example of limited memory AI includes autonomous vehicles; they use AI to interpret movements from other cars and respond accordingly.
- Theory of mind: Theory of mind AI is still in development. However, it refers to AI technology with advanced decision-making capabilities similar to humans, like understanding emotions and adjusting behaviours accordingly.
- Self-aware: Self-aware AI is considered the most sophisticated breach of AI; it describes machines aware of their emotions and those around them.
There are over 58,000 AI companies worldwide, and you can start investing in global AI stocks on the ASX. You can start investing in AI in two ways: AI stocks and AI exchange-traded funds (ETFs). We will cover investing in AI stocks, not an artificial intelligence ETF.
Investing in AI Stocks: Benefits and Drawbacks
Although AI has recently found popularity, it became known in the 1980s when the AI boom took place, but you may still be unsure if AI stocks are a suitable investment, so we’ve compiled a list of all the benefits and drawbacks.
Benefits ✅️
- Promising AI investments in the AI revolution could see huge stock gains.
- AI is a disruptive technology expected to increase economic value.
- Most companies are trying to leverage the power of AI. AI is used in several industries, like car technology, smartphone technology, streaming platforms, etc.
- Investing in a new stock or share can help diversify your portfolio. Owning different assets and investments can help avoid losing all your investments if one asset has a price drop in market value.
Drawbacks ❌️
- Although AI has been around since the 1950s, it’s considered a relatively new technology that causes uncertainty, especially regarding regulation.
- It’s challenging to pick winners with emerging tech companies.
- Like any investment, AI stocks are unpredictable. The stock market can be volatile at times.
Best ASX Listed AI Stocks in Australia: Reviews ➡️
All the ASX AI Stocks and the artificial intelligence companies in the following list were current as of 11 November 2023. Depending on when you’re reading this, there could be changes in the AI technology and market.
1. Wisetech Global Limited (ASX: WTC)
- Market cap: $20.73B
- Market price: $62.220
Wisetech Global Limited develops AI-driven software solutions for supply chain management. The software company’s mission is to bring meaningful and continual improvement to the world’s supply chains by replacing aging, legacy, proprietary systems with efficient, highly automated, integrated global capabilities.
Wisetech stocks (ASX: WTC) were listed on 11 April 2016. WTC stocks pay dividends of around $0.084, are the world’s 1175th most valuable company, and have seen a 9.64% increase in market cap in 2023. So, as this AI stock slowly rises in the market, it could be seen as a good investment.
2. Brainchip Holdings Ltd (ASX: BRN)
- Market cap: $375.91M
- Market price: $0.210
Brainchip is a global technology company considered a leader in AI edge chip processing and learning. The Brainchip mission is to make every device with a sensor AI-smart, bringing common sense to the processing of sensor data. These AI systems, or Essential AI, optimise computing, maximising performance and minimising power.
Brainchip Holdings Ltd have AI tech stocks (ASX: BRN) on the ASX, which’ve been listed since 09 November 2011. This AI stock has declined this year but is currently at an accessible price, which could suit new investors looking to buy stocks at low market prices.
3. Bigtincan Holdings Ltd (ASX: BTH)
- Market cap: $160.92M
- Market price: $0.265
Bigtincan uses AI and machine learning to provide high-quality sales enablement automation software to help companies excel in revenue growth prospects.
The mission of Bigtincan is to engage, measure, and continually improve and empower a business’s customer-facing teams with a flexible and personalised platform. Some of Bigtincan’s customers include Guess and Nike.
Bigtincan Holdings listed (BTH on ASX) on 24 March 2017. There has been a change in this stock within the last year with -60.75%, making the share price low but accessible. There has been an increase in trading volume of 26.61% but a price fall in recent days.
4. Appen (ASX: APX)
- Market cap: $156.92M
- Market price: $0.965
Appen specialises in empowering companies to transition from pilot to production with comprehensive solutions tailored to each business model’s AI journey.
Appen helps bring AI applications to life with AI and machine learning models support with training data and expert-managed services. Appen can help with data sourcing and preparation, model evaluation, whole-page evaluation, cataloguing and more. Appen’s customers include Google, Microsoft, and Amazon.
Appen Limited was listed (ASX: APX) on 07 January 2015. Recently, APX has seen an increase in value by 2.659%, a good sign after the price crash and revenue decline in the first few months of 2023. With the relatively low price and slow increase in value, it could be a good time to buy stocks if there is a chance the value will continue to increase.
5. Dubber (ASX: DUB)
- Market cap: $69.47M
- Market price: $0.180
Dubber provides cloud-based software solutions for call recording, software-as-service and voice data offering. Dubber is a software company specifically designed to help communication service providers with solutions that innovate and monetise business networks.
Dubber’s AI technology is voice AI using machine learning to create insights and transcripts from video, voice and chat conversations.
Dubber has had its stocks (ASX: DUB) listed since 30 June 2000. At the beginning of 2023, DUB started strong and then as the months came, the value decreased until around April, and the market value hasn’t changed dramatically. There has been a slight increase in recent weeks, but overall, the stock has been steady for most of the year. So, if you’re an investor looking for something stable, DUB would be an excellent stock to consider now.
6. Unith (ASX: UNT)
- Market cap: $17.99M
- Market price: $0.018
Unith, previously known as Crowd Mobile and Crowd Media, specialised in revolutionising marketing, sales and education journeys using interaction conversations through AI technology.
Unith is involved in various industries and AI projects, including Talking Head. Talking Head’s platform compiles AI with machine learning to simultaneously enable one medical professional to respond to many patients’ questions.
Unith’s stocks (ASX: UNT) have been listed since 16 December 1999. The market value for the stock has been up and down in 2023. Still, Unith did report that the financial year 2023 was a breakout period where the company reached platform development and commercialisation milestones. The progress isn’t yet reflected in the stock market value, but this could change as the year ends.
Final Thoughts 💡️
As the AI space grows, there is certainly optimism for AI stock value and market cap to rise, too. Buying stocks and shares during the early life of a company can reap profits later when the company’s business model grows. So, if you’ve seen an AI stock from our best list and see growth potential, consider expanding your investment portfolio.
Frequently Asked Questions 🔎️
What Is Artificial Intelligence?
AI typically refers to technology doing tasks that require human intelligence. Previously, computers could learn and recognise patterns to conclude by data collection and training. Now, different types of artificial intelligence allow technologies to do more than they have ever been able to before.
What Are the Top Australian AI Businesses?
Many AI companies in Australia are pioneering the AI industry. It’s difficult to say which is doing the most, but some noticeable leaders include Brainchip Holdings Ltd, Wisetech Global Limited, Bigtincan Holdings Ltd, and Appen.
How Do I Buy AI Stocks in Australia?
Buying AI stocks in Australia isn’t too tricky. You can follow these simple steps to start investing in ASX AI stocks:
- Research global companies involved in AI, or look closer to home for ones in Australia. Once you’ve found the right company in the AI market, check out past performance to decide if it’s the best option.
- Find a stock-sharing trading platform. You can find AI stocks on the ASX.
- Open and fund your brokerage account.
- Buy stocks and shares.
What Are the Benefits of Investing in AI Stocks?
There are several benefits to investing in AI stocks, including
- AI is a disruptive technology expected to increase economic value.
- Most companies are trying to leverage the power of AI. It’s already being used in several industries, like car technology, smartphone technology, streaming platforms, etc.
- Investing in a new stock or share can help diversify your portfolio. Owning different assets and investments can help avoid losing all your investments if one asset has a price drop in market value.
What Are the Drawbacks of Investing in AI Stocks?
There is risk involved with most investments, as well as other drawbacks. The main disadvantages of AI stocks are:
- AI is still considered a relatively new technology that causes uncertainty, especially regarding regulation.
- It’s challenging to pick winners with emerging tech companies.
- Like any investment, AI stocks are unpredictable. The stock market can be volatile at times.
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