3 ASX shares using AI to help supercharge profits

Artificial intelligence could be the next trend to boost businesses.

| More on:
appen share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Temple & Webster is using a variety of tools to help improve its conversion and revenue of customers
  • Volpara is using the latest AI to help analyse breast screening images and identify risk
  • Sonic has teamed up with an AI business to create a new era of pathology analysis

Artificial intelligence (AI) is disrupting a number of different services and industries. Some ASX shares are finding opportunities to boost the profit margin by using AI.

Companies that are able to grow the revenue and profit margin can grow their bottom line at a pleasingly fast rate, which can be a good thing for shareholder returns.

Businesses don't necessarily need to be classified as an ASX tech share to use AI. I'm going to tell you about three ASX shares that are looking to utilise AI to boost profit.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is an ASX retail share that sells all of its 200,000 products online. It has a large array of furniture and homewares on its website, as well as a growing home improvement range and products for home improvement.

The company recently gave a business update which included an AI update.

It said that ChatGPT now powers all pre-sale product enquiry live chats (which accounts for 25% of customer enquiries. This led to an "increase in live chat customer satisfaction, an increase in customers adding products to their carts, and an increase in conversion rates from this channel."

The ASX share has increased its investment in Renovai, an Israeli start-up that is disrupting how customers shop. At the moment, this powers product recommendation mood boards on the site which have shown a "significant increase in conversion rate for customers who interact with this tool."

Finally, it has used AI to generate "enhanced product descriptions across all 200,000 products on the site, a task not possible to do at scale efficiently with a human team." Company testing has shown this has led to an increase in the conversion rate, add to carts and revenue per visit.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is a global pathology business, but it's involved in AI in a couple of different ways.

The ASX healthcare share has a 20% stake in AI business Harrison.ai which has an existing joint venture called Annalise.ai, which is seen as a market leader in radiology AI.

Sonic's joint venture with Harrison.ai is called Franklin.ai which aims to "develop best-in-class AI diagnostic tools for pathology. Sonic will use Franklin products in-house to "enhance efficiency and quality in its global operations."

Franklin's strategy is to sell AI solutions to the global market. The ASX share's management believes there are "powerful synergies between Sonic (medical) and Franklin (AI) teams."

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX healthcare share that provides software for medical professionals to carry out breast screening and analysis to help them analyse a patient's risk and help inform them on the next steps.

The company says that its "focus on customer value" means that its "AI-powered image analysis enables radiologists to quantify breast tissue with precision and helps technologists produce mammograms with optimal image quality."

Volpara says that it has a "substantial growth outlook" which includes leveraging AI to create new models for image analysis and interpretation, as well as new applications of research data.

The ASX share has also revealed that Volpara's AI team is working with Microsoft on software to identify heart disease.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft, Temple & Webster Group, and Volpara Health Technologies. The Motley Fool Australia has positions in and has recommended Volpara Health Technologies. The Motley Fool Australia has recommended Sonic Healthcare and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 300 shares could rise 35% to 65%

Analysts are tipping these shares to rise strongly from current levels. How high could they go?

Read more »

a man in a high visibility vest and hard hat holds a thumbs up at a mine site with heavy equipment in the background.
Broker Notes

What are brokers saying about BHP shares following the miner's quarterly results?

Analysts have crunched the numbers.

Read more »

A young girls clings in fright to a big red slide.
Share Market News

Here are the top 10 ASX 200 shares today

Investors were hitting the sell button hard today...

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Share Fallers

ASX 200 insider buys up another $2,000,000 in company stock following Wednesday's 15% crash

This director took Buffett's advice to heart this week.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Appen, Mayne Pharma, Playside, and PYC shares are storming higher

These shares are ending the week on a positive note. But why?

Read more »

Man on a laptop thinking.
Broker Notes

Why did Goldman Sachs just downgrade Wesfarmers shares?

The ASX 200 conglomerate has had a ripper run of share price growth. So why is Goldman Sachs downgrading it?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AIC Mines, Fletcher Building, Nufarm, and Wesfarmers shares are dropping

These shares are having a tough finish to the week. But why?

Read more »