There's no escaping AI.
The revolutionary technology is rapidly reshaping companies and markets.
And business leaders are increasingly warning of the impact AI will have on jobs.
Jim Farley of Ford Motor Co. (NYSE: F) was the latest high-profile CEO to offer his thoughts on the subject.
He stated AI could replace 50% of all white-collar jobs.
While such news may come as a dire warning for some, others will be looking for ways to capitalise on this technological transition.
So, here are 3 top ASX AI shares for your watchlist.
image source: Getty Images
Life360 Inc. (ASX: 360)
Life360, a location-sharing app designed to help families and close groups stay connected, now claims to have 80 million users.
The company continues to expand its offerings and drive efficiencies by utilising AI.
And investors have cashed in on the company's success, with its share price doubling over the past year.
Life360 shares, currently changing hands for about $32.95 each, still have significant growth ahead, according to analysts.
Bell Potter has a price target of $37.50 on Life360 shares, implying a potential upside of around 14% over the next year.
NextDC Ltd (ASX: NXT)
Data centre operator NextDC has positioned itself to ride the AI wave.
As demand for AI processing increases, so too does the need for high-performance data centres.
NextDC owns and operates data centre facilities across Australia and is pressing ahead with its expansion plans abroad, particularly in South East Asia.
A series of recent contract wins has coincided with a recovery of the company's share price.
The NextDC share price sunk to $10.04 in April in the wake of Trump's tariffs turmoil.
But the data centre operator's share price has since recovered.
NextDC shares are currently changing hands for about $13.78 each, having gained more than 37% in the past few months.
Brokers still see an upside in NextDC at its current valuation.
Morgans has a buy rating and a $18.80 price target on NextDC shares.
Ord Minnett also has a buy rating on NextDC shares with an $18.00 price target.
Appen Ltd (ASX: APX)
Appen was once among the most celebrated AI shares on the ASX.
The company provides datasets used by major tech companies to develop AI and machine learning capabilities.
After listing in 2015, Appen shares hit an all-time high of $31.52 in 2020.
But the Appen share price has since come crashing back to earth, with Appen shares currently trading at around $1.12 each.
Still, a fresh wave of investor confidence has pushed the Appen share price up over the past year.
Appen shares have gained almost 150% over the past 12 months after the company's share price dropped below $0.50 at one point last year.
Last month, Appen stated it's forecasting revenue between $235 million and $260 million for FY25.
If the result comes in at the higher end of the projection, the company will realise growth of 10.9% for the year.
Although things may be looking up for Appen, it has proved to be a highly volatile company for investors over the years.
