3 Australian AI Stocks With Real Revenue Investors Should Watch

Global inflation worries are back in focus after Fed Chair Warsh warned that price pressures have not meaningfully slowed. Higher rate risk keeps pressure on many assets, yet capital is still flowing toward companies tied to artificial intelligence and ChatGPT. Investors are searching for growth stories that do not rely only on cheaper money. This article walks through 3 AI stocks from our screener that capture that theme.

The 3 stocks below are only a starting sample from this theme, and the full AI screen surfaced 17 more companies with equally compelling narratives that are not covered in this article. To go deeper into the opportunity set, head straight into the Artificial Intelligence/ AI Stocks screener to identify and analyze the highest conviction ChatGPT and AI plays that fit your own criteria.

SEEK (ASX:SEK)

SEEK is an online employment marketplace and HR software group that uses AI in products like its Advanced job ads and Talent Search tools to match candidates to roles more efficiently, while still earning most of its money from a broader mix of job ads and recruitment services. The business generated about A$945 million from Employment Marketplaces in Australia and New Zealand and A$254 million from Employment Marketplaces in Asia, showing a heavy tilt to its home markets with a growing contribution from Asia. SEEK has a market cap of about A$5.3 billion.

Investors looking at AI in the real economy may find SEEK interesting because its AI powered job ad targeting and candidate matching sit on top of a large, established recruitment platform rather than a pure concept stock. The company is pushing deeper into under-penetrated Asian markets and rolling out freemium and premium ad models that could improve yield if volumes recover. At the same time, SEEK is currently loss making, carries meaningful debt and is returning cash via dividends, so the pace of AI product investment and the path back to profitability matter. The extent to which management translates its AI tools and Asia expansion into sustainable earnings will influence how investors think about the gap between today’s losses and analysts’ longer term expectations.

SEEK’s AI push in job matching and its expansion in Asia could be masking a much larger shift in its earnings profile. Before assuming the losses are temporary, read the 2 key rewards and 2 important warning signs

Xero (ASX:XRO)

Xero is a cloud based accounting and payments platform for small businesses, with products for bookkeeping, payroll, tax, invoices and bill payments. Its clearest AI link is Syft, which uses machine learning to create reports, forecasts, dashboards and consolidations directly from Xero data. The business reports essentially all of its NZ$2.75b revenue from providing online solutions for small businesses and their advisors, supported by a global footprint across Australia, New Zealand, the UK, the US and other markets. Xero has a market cap of about A$14.6b.

Investors watching the AI shift in everyday business tools may consider having Xero on the radar. Syft and the newer JAX AI features plug directly into workflows accountants and small businesses already rely on, which could make AI forecasting and agent like automation feel more like a trusted helper than a threat. Forecast revenue and earnings growth and very high gross margins indicate the potential for meaningful operating leverage if Xero can keep rolling out AI features without letting costs run away. The flip side is a rich P/E multiple, softer profit margins and low current returns on equity, so the stock still needs to demonstrate that AI led products can translate into durable earnings rather than just hype.

Xero’s AI tools and global footprint could be setting up a powerful earnings story that markets have not fully priced in yet. Get the full context in the analyst forecasts for Xero and see what might be missing.

CAR Group (ASX:CAR)

CAR Group runs online vehicle marketplaces and related services across Australia, Asia, Latin America and North America, with early stage AI driven tools for vehicle valuations and inspections that support its core listings and advertising rather than dominate revenue. The company generated about A$518 million from Australia, A$327 million from North America, A$253 million from Latin America, A$145 million from Asia and A$11 million from investments, and it has a market cap of roughly A$10.4b.

Investors looking at real world AI applications may find CAR Group interesting because its AI powered data, valuation and inspection tools plug directly into a large, global classifieds and advertising platform. Revenue of about A$1.25b and net income of A$313.69 million in FY2026, along with guided revenue growth in FY27, point to a business already scaled. AI initiatives could widen margins and deepen dealer and consumer engagement over time. The catch is a meaningful debt load and dividends that are not fully covered by earnings, which could limit flexibility if AI projects demand more capital. The bigger question is how much of the future upside from these AI and data products is already reflected in today’s valuation and analyst expectations.

CAR Group’s AI tools and global footprint could be masking a much bigger earnings story than the headline numbers suggest. To put its revenue mix, debt load and AI opportunity in context, see the analysis report for CAR Group

Curious About What You Might Be Missing Next

Fresh opportunities do not stay under the radar for long. Some stocks build quiet momentum while others get caught dropping before the crowd notices. Scan these ideas and consider whether they fit your strategy.

• Identify income workhorses with staying power before yields change significantly using this curated set of 8 dividend fortresses.
• Look for financially sound outliers that the market has not fully focused on yet across our curated 10 high quality undiscovered gems.
• Focus on companies designed to absorb shocks and continue compounding through setbacks by reviewing the hand picked 12 resilient stocks with low risk scores.

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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