3 UK AI Stocks Worth A Closer Look Right Now

Artificial intelligence is touching everything from consumer apps to industrial tools, and the ChatGPT and AI stocks screener focuses on companies at the center of that shift, including semiconductors, software, cloud and large language models. With investors watching inflation trends, interest rates, housing data and global confidence readings, AI exposure is one way to look beyond short term macro headlines and focus on long term transformation. This article highlights 3 of the best stocks from the screener, helping you quickly spot businesses that are directly tied to the current AI build out across hardware and software stacks.

Cerillion (AIM:CER)

Overview: Cerillion is a London based software company that supplies billing, charging and customer relationship management systems to telecom operators and other subscription businesses worldwide, offering pre-packaged platforms that support everything from quad play consumer services to smart city infrastructure.

Operations: Cerillion generates revenue primarily from Software at £22.6m, followed by Services at £17.8m and Other income of £2.0m.

Market Cap: £310.2m

Cerillion gives you exposure to the AI build out inside telecom and subscription billing, with products like its Enterprise Product Catalogue and Business Insights platforms using AI to help operators design, price and analyse complex services. Forecast earnings and revenue growth in the mid teens, high forecast ROE and net profit margins above 30% all point to a business with solid profitability. However, the P/E sits below some peers in the UK software space. At the same time, investors need to weigh a funding structure that leans on external borrowing and a board with relatively low independence, alongside recent H1 results that showed a decline in revenue and earnings, before deciding how Cerillion fits their AI exposure.

Cerillion’s strong margins and AI driven billing platform sit alongside a lower P/E and external borrowing, so it is worth seeing how these pieces connect in the 2 key rewards and 1 important major warning sign

Bytes Technology Group (LSE:BYIT)

Overview: Bytes Technology Group is a UK based IT reseller and services company that helps organisations source and manage software, security, AI and cloud solutions, alongside hardware such as servers and laptops, with added training, consulting and managed services.

Operations: Bytes Technology Group generates almost all of its £220.6m revenue from its IT Solutions Provider segment, with £211.9m from the United Kingdom and smaller contributions from Europe and the rest of the world.

Market Cap: £968.3m

Bytes Technology Group gives investors exposure to AI, cloud and cyber security spending, with a long established reseller model that now leans into higher margin security and services alongside Microsoft focused AI software. Revenue recently edged up while net income and margins slipped, and 2027 profit guidance points to flat operating profit as the company absorbs higher tech and bonus costs. This means the current valuation does not reflect a smooth growth story. However, the combination of high quality earnings, very strong current and forecast return on equity, a buyback program and a P/E below the wider European software peer group may encourage investors to look more closely at how this cost reset and AI push could influence the next phase of the business.

Bytes Technology Group’s mix of high quality earnings and lower P/E compared to European software peers raises a clear question: is the market fully pricing in its AI and security focus or missing key context in the 3 key rewards and 1 important warning sign

AdvancedAdvT (AIM:ADVT)

Overview: AdvancedAdvT is a London based software group that provides business, financial management and human capital management tools, along with healthcare compliance and intelligence platforms, and also offers an AI driven process automation platform used across the UK, Europe, North America and other regions.

Operations: AdvancedAdvT generates all of its £53.4m revenue from Internet Software & Services in the United Kingdom.

Market Cap: £211.2m

AdvancedAdvT puts AI to work inside everyday business and healthcare workflows, combining subscription software with a machine learning automation platform that sits squarely in the theme of this screener. Revenue reached £53.4m while net income fell to £4.61m and margins compressed to 8.6%. The current profile combines forecasts of around 32% earnings expansion with recent profit pressure and a modest 3% ROE. The stock also trades on a high P/E relative to European software peers, even though some valuation models indicate a discount to estimated fair value. That mix of AI exposure, forecast earnings growth and uneven recent results is one reason many investors may look deeper before forming a view on AdvancedAdvT.

AdvancedAdvT’s high P/E, modest 3% ROE and AI automation story suggest that the usual shortcuts may miss something important, so it is worth reading the 2 key rewards and 2 important warning signs to see what could be hiding in plain sight

The three AI stocks covered here are just a starting point, and the full screener has surfaced 15 more companies tied into chips, cloud, LLMs and ChatGPT style software that each carry their own compelling narrative inside the Artificial Intelligence/ AI Stocks screener. Use Simply Wall St to identify, filter and analyze the specific catalysts that matter to you so you can focus on the AI stocks that best match your highest conviction ideas.

Take Control of Your Investment Journey

If AdvancedAdvT or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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