When investors think about artificial intelligence (AI), they usually go straight to technology shares.
That makes sense. Software companies, chipmakers, data centres, and cloud platforms are the obvious beneficiaries.
But I think there is another group of companies worth watching: large businesses that already have customers, data, scale, and the ability to use AI to improve how they operate.
One ASX blue chip I think fits that description is Wesfarmers Ltd (ASX: WES).
Image source: Getty Images
A different kind of AI opportunity
Wesfarmers is not an AI stock in the usual sense.
It is best known for Bunnings, Kmart, Officeworks, Priceline, and its industrial and chemicals operations. That makes it look more like a retail and industrial conglomerate than a technology play.
But I think that is what makes the opportunity interesting.
Wesfarmers has millions of customer interactions across its businesses. It has large store networks, major supply chains, digital platforms, loyalty programs, pricing systems, and inventory decisions being made every day.
That gives it plenty of places where AI and data can potentially make a difference.
This is not about replacing the core business. It is about making strong businesses even better.
OpenAI deal
Late last year, Wesfarmers entered into a partnership with OpenAI to make ChatGPT Enterprise available across the group, along with customised training programs.
Wesfarmers' Managing Director Rob Scott said:
We continue to increase the use of AI across the Group, in areas such as demand forecasting, product design, customer service and experience, marketing effectiveness and conversational commerce.
By working with OpenAI, we can continue leveraging technology to enable growth and support productivity. We believe Australian businesses should adopt AI-driven solutions to remain globally competitive and this collaboration provides our team members with another tool and further training to take advantage of this transformative technology.
Small improvements can matter
In a company like Wesfarmers, I do not think AI needs to create a brand-new business to be valuable.
Small improvements across a large base can add up.
If Bunnings can forecast demand more accurately, manage stock better, improve online search, or help team members answer customer questions faster, that can support sales and efficiency.
If Kmart can use data to improve ranging, pricing, supply chain planning, and product availability, that can reinforce its value proposition.
If Officeworks can make its digital experience more useful for households, students, and small businesses, that could help defend its market position.
None of these ideas sounds as exciting as a new AI chatbot or chip design. But in my opinion, they may be more practical and easier to monetise.
Why I would buy it
Wesfarmers shares are rarely the cheapest on the ASX.
But I think that is partly because the market understands the quality of the group.
For long-term investors, I believe the appeal is its ability to keep adapting. Wesfarmers has shown over many years that it can manage capital well, improve businesses, and invest in new opportunities when they make sense.
That is why I think it could be a quiet AI winner.
It has the data, scale, brands, and management discipline to use technology in ways that actually improve the business.
Foolish Takeaway
I would not buy Wesfarmers because it is suddenly an AI stock.
I would buy it because it is a high-quality ASX 200 blue-chip share that may have more technology upside than the market gives it credit for.
The best AI opportunities may not all come from companies selling the tools. Some may come from businesses that use those tools well.
