AI Stocks To Watch In UK Software And Cloud

AI investment is back in focus as Euro Area data points to steady GDP and growing interest in AI related spending. Large language models and cloud tools like ChatGPT are starting to look more like core infrastructure rather than side projects. That shift is pulling attention toward AI stocks across chips, software and platforms. This article highlights 3 stocks from our AI Stocks screener that sit at the heart of this theme.

The three stocks below are just a starting sample from our AI Stocks idea, and the full screen surfaced 15 more companies with similarly compelling ChatGPT and AI related stories that are not covered here. To identify and analyze your own highest conviction AI opportunities across chips, software, LLMs and cloud, head straight into the Artificial Intelligence/ AI Stocks screener.

Cerillion (AIM:CER)

Overview: Cerillion is a London based software company that builds billing, charging and customer relationship tools for telecom operators and subscription businesses worldwide, helping them manage tariffs, customer data, revenues and network services across both traditional and digital channels.

Operations: Cerillion generates most of its revenue from Software at about £22.6 million and Services at about £17.8 million, with a smaller Other segment of around £2 million.

Market Cap: £266 million

Cerillion sits at the crossroads of telecom software and AI, with products like Enterprise Product Catalogue and Business Insights using AI to help operators package, price and understand services more efficiently. The company is also putting Agentic AI at the centre of its latest BSS/OSS demonstrations, showing how telecom services and complex supply chains could be automated and managed in real time. On top of that, the stock is trading below one independent fair value estimate, while some analysts highlight additional potential. Investors do need to weigh this against recent revenue and earnings declines in H1 FY2026 and a board that is not majority independent, which keeps governance and earnings quality on the watchlist.

Cerillion sits at the centre of AI driven telecom billing, yet its share price and recent earnings headlines may not tell the full story. Get the 4 key rewards and 1 important major warning sign

Build your own AI billing and infrastructure shortlist

Cerillion and the other two AI stocks in this article all surfaced from a single Simply Wall St screen, but the real value comes from creating filters that fit how you invest. Use our flexible Screener to combine valuation, growth, balance sheet and risk checks in one place, or tap into our curated Investing Ideas if you prefer starting from a ready made shortlist.

Bytes Technology Group (LSE:BYIT)

Overview: Bytes Technology Group supplies software, security, AI and cloud services, along with hardware such as servers and laptops, helping organisations in the UK and abroad manage their IT needs from licensing and subscriptions to training and consulting. The company also supports customers with cybersecurity, digital workspaces and hybrid infrastructure projects.

Operations: Bytes Technology Group generates around £220.6 million in revenue from its IT Solutions Provider segment, with most sales coming from the United Kingdom at about £211.9 million and smaller contributions from Europe and the rest of the world.

Market Cap: £962.2 million

Bytes Technology Group combines exposure to AI, cloud and cybersecurity with very strong profitability metrics, including a high Return on Equity and solid net margins. Many investors are watching it closely despite a recent dip in earnings growth and flat 2027 profit guidance. The company is investing heavily in new systems, a customer marketplace and extra technical staff. This may support expansion in higher margin cybersecurity and AI focused services. However, there are risks, including reliance on lower margin public sector contracts, changes to Microsoft incentives and a funding structure built entirely on external borrowing. With analysts divided on price targets and UBS recently moving to a Sell rating, the key question for investors is how they weigh the AI and cybersecurity strategy against these pressures.

Bytes Technology Group sits where AI, cloud and cybersecurity are starting to blur, yet the real story may be hidden in how profits, contracts and funding fit together. Get the analysis report for Bytes Technology Group

AdvancedAdvT (AIM:ADVT)

Overview: AdvancedAdvT is a London based software company that provides business management and healthcare compliance platforms, including AI based tools, to customers across the UK, Europe, North America and other international markets.

Operations: AdvancedAdvT generates around £53.4 million in revenue from its Internet Software and Services business, with all reported revenue coming from the United Kingdom.

Market Cap: £231 million

AdvancedAdvT attracts attention because it combines an AI focused software portfolio with earnings that analysts expect to grow around 32% a year over the next few years, yet the stock is priced below one independent fair value estimate. Revenue for the year to February 2026 was £53.4 million, while net income declined to £4.61 million after a large £5.6 million one off loss and a sharp drop in profit margins. That mix of forecast growth, current P/E premium, funding entirely through external borrowing and reduced profitability creates a tension between upside and risk. For investors who can handle earnings volatility, the coming AGM and results updates could be important catalysts.

AdvancedAdvT’s earnings story and AI focus look tightly linked, yet recent margin pressure and that one off loss suggest something deeper. Review the analyst forecasts for AdvancedAdvT to see what could be hiding behind the headline numbers.

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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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