The technology sector has had a volatile start to the year.
Concerns that artificial intelligence could disrupt traditional software companies have led to a broad sell-off across many tech names. Some investors fear artificial intelligence (AI) could lower barriers to entry or even replace certain software platforms entirely.
However, not all software businesses face the same risks. Some companies operate in specialised markets, benefit from powerful ecosystems, or hold critical data that is difficult to replicate.
With that in mind, here are two ASX growth shares that could still deliver strong returns over the next decade.
Image source: Getty Images
Pro Medicus Ltd (ASX: PME)
One ASX growth share that could be a compelling long-term investment is Pro Medicus.
The healthcare imaging software company has built a strong position in the global radiology workflow market through its Visage platform. The technology allows clinicians to access and analyse extremely large medical imaging files with exceptional speed and reliability.
Medical imaging datasets are becoming larger and more complex as scanners become more advanced. Some modern scans can produce thousands of images or multi-gigabyte files, which creates a growing need for high-performance imaging software.
Pro Medicus has developed streaming technology designed to handle these massive datasets more efficiently than legacy systems. This allows radiologists to access images instantly rather than waiting for them to download, improving productivity and clinical workflows.
The company is also expanding its platform beyond radiology. New modules such as cardiology imaging, workflow software, and digital pathology are extending the product suite and increasing the value delivered to customers.
Importantly, the business still has a long runway for growth. In North America alone, hundreds of millions of imaging exams are performed each year and the company has only penetrated a small portion of the potential market.
While some investors worry that AI could disrupt software companies, Pro Medicus may actually benefit from it. The Visage platform is designed to integrate with AI algorithms and the company is already collaborating with partners and research institutions to develop new AI-powered imaging capabilities.
Given the mission-critical nature of healthcare imaging and the company's technological lead, Pro Medicus could remain a key player in medical imaging workflows for many years.
Xero Ltd (ASX: XRO)
Another ASX growth share that could be worth considering for the next decade is Xero.
The cloud accounting platform provider has built one of the largest ecosystems serving small and medium-sized businesses. Its software sits at the centre of financial operations for millions of customers, handling accounting, payroll, payments, and financial reporting.
One of the key advantages of the platform is the depth of data it holds. By acting as the system of record for financial activity, Xero can provide insights and automation that are deeply integrated into a customer's business operations.
This data foundation may become even more valuable in the age of AI. Rather than replacing accounting platforms, artificial intelligence could expand the capabilities of software like Xero by automating workflows, generating financial insights, and helping businesses make better decisions.
Management believes the rise of AI could significantly expand the addressable market for software platforms over time. Estimates suggest the global SaaS market could grow dramatically as AI unlocks new use cases and productivity tools.
Xero is already embedding AI features across its product suite, including automated bank reconciliation, invoice generation, financial insights, and conversational assistance tools. These features aim to save time for business owners while improving the accuracy of financial management.
With millions of subscribers, a large partner ecosystem, and a growing payments opportunity in markets such as the United States, the platform still has significant room to expand globally.
And if it continues to deepen its ecosystem and leverage AI to enhance its software, Xero could remain a major player in small business financial software for many years to come.
