--- title: "Xero Stock And 2 Australian AI Shares Backed By Real World Software Use" type: "News" locale: "en" url: "https://longbridge.com/en/news/296249825.md" description: "The article highlights three Australian stocks leveraging AI in real-world applications: SEEK, Xero, and CAR Group. SEEK uses AI for recruitment tools despite recent losses; Xero integrates AI into accounting software with high margins but modest net profits; CAR Group applies AI to vehicle valuation and advertising. These companies are presented as key players benefiting from the AI build-out amidst rising bond yields." datetime: "2026-08-18T15:34:25.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296249825.md) - [en](https://longbridge.com/en/news/296249825.md) - [zh-HK](https://longbridge.com/zh-HK/news/296249825.md) generator: "portal-rs" --- # Xero Stock And 2 Australian AI Shares Backed By Real World Software Use Global bond yields are climbing as investors reassess inflation risks linked to higher energy costs. That kind of rate pressure can be a headwind for many assets, yet it puts a sharper spotlight on companies tied directly to the AI and ChatGPT build out. The screener surfaces stocks connected to chips, cloud and software. This article highlights three AI stocks from that list that merit a closer look now. The three AI stocks discussed below are just a sample from a wider group, with the full screen surfacing 16 more companies tied to the ChatGPT and broader AI build out that are not covered here but have equally interesting stories. To go deeper, head straight into the Artificial Intelligence/ AI Stocks screener to identify ideas, compare fundamentals, and analyze which AI opportunities best match your own conviction. ## SEEK (ASX:SEK) SEEK is an online employment marketplace that connects hirers and jobseekers, with a growing focus on AI powered recruitment tools such as advanced job ads with AI candidate targeting and Talent Search database matching. The business is still anchored in its Employment Marketplaces operations, with about A$945 million of revenue from ANZ and A$254 million from Asia, so the AI features sit within a broader recruitment and HR software platform rather than being the whole story. At a market cap of about A$5.4 billion, SEEK is a sizeable player in listed recruitment tech. Investors paying attention to SEEK today are really weighing how its AI driven job ads and candidate matching can reshape recruitment, especially as more hiring moves online and into flexible work models. The company is investing heavily in these products and in Asian expansion, which could support future earnings if adoption keeps building. At the same time, recent results show a swing to a loss and a balance sheet that relies on debt and uncovered dividends. For those wanting to understand whether the AI momentum can outweigh those pressures, SEEK’s detailed earnings path, competitive position and funding profile are worth a closer look. SEEK’s AI hiring engine could be masking a much bigger shift in how its earnings, debt and uncovered dividends fit together. Get the full picture in the 2 key rewards and 2 important warning signs ASX:SEK Revenue & Expenses Breakdown as at Aug 2026 ### Build your own AI hiring and automation shortlist SEEK and the two other AI driven stocks in this article all came from a single Simply Wall St screen, but the real edge comes when you set the filters yourself. Use our flexible Screener to mix valuation, growth, balance sheet and risk metrics, or jump straight into one of our curated Investing Ideas. ## Xero (ASX:XRO) Xero is a cloud based platform that helps small businesses and their advisors run accounting, payroll, payments and tax in one place, with its Syft product using AI to create automated reports, forecasts and dashboards from customer data. Almost all of its NZ$2.8b revenue comes from providing online solutions for small businesses and advisors across Australia, New Zealand, the UK, the US and the rest of the world. At about A$14b in market value, Xero is a major listed player in small business accounting software. For investors focused on AI in real world workflows, Xero brings that theme into day to day accounting through Syft’s AI generated insights, JAX agent powered automation, and AI linked features in products like Melio and Xero Analytics. The company is already large with high gross margins. Net margins and return on equity are still modest and under pressure as it spends on AI and platform expansion. That mix of proven cloud scale, early stage AI monetisation and real risks around execution and funding makes Xero a stock where the headline story is clear, while the real opportunity and trade offs sit in the detail of its earnings path and AI adoption curve. Xero’s high margin cloud engine and early AI push could be reshaping earnings quality in ways the headline numbers miss. Get the deeper story in the analysis report for Xero ASX:XRO Revenue & Expenses Breakdown as at Aug 2026 ## CAR Group (ASX:CAR) CAR Group runs online vehicle marketplaces across Australia and international markets, and has been building an AI driven arm that powers vehicle valuation, appraisal and inspection tools used in its listings, pricing and targeted advertising. Most revenue still comes from its core online marketplaces and advertising services, with A$518 million from Australia, A$327 million from North America, A$253 million from Latin America and A$145 million from Asia, while early stage investments contribute A$11 million. At around A$11.2b in market value, CAR Group is one of the larger listed digital auto platforms in the region. CAR Group may be of interest if you want AI that is already embedded in a real world business model rather than a pure research story. Its machine learning valuation and inspection tools sit on top of a large classifieds platform, where high margin data and analytics products currently support a 25% net margin. The catch is that this is being priced as a premium stock, with meaningful debt and dividends that are not well covered by earnings, so the potential benefit from AI driven services needs to be weighed against these factors. The full risk reward trade off is more nuanced than the headline numbers suggest. CAR Group’s high margin AI data engine and premium pricing story may conceal a very different balance between growth, debt and dividends than the headline suggests. Explore that contrast in the 3 key rewards and 2 important warning signs ASX:CAR Revenue & Expenses Breakdown as at Aug 2026 ## Curious About Alternative Stock Paths? Fresh ideas can move fast. Some stocks build quiet momentum, while others are caught dropping before the crowd reacts. Scan these under the radar for now screens and act now. - Target steady cash generators and income potential by reviewing a curated group of income focused stocks through the 4 dividend fortresses. - Spot early movers with strong balance sheets by checking a focused list of solid balance sheet and fundamentals (21 results). - Ride structural shifts in real assets by assessing a hand picked pool of miners and producers via the 30 elite gold producer stocks. *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.* ### **New:** AI Stock Screener & Alerts Our new AI Stock Screener scans the market every day to uncover opportunities. • Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI Companies Or build your own from over 50 metrics. Explore Now for Free ### Related Stocks - [XRO.AU](https://longbridge.com/en/quote/XRO.AU.md) - [CAR.AU](https://longbridge.com/en/quote/CAR.AU.md) - [SEK.AU](https://longbridge.com/en/quote/SEK.AU.md) ## Related News & Research - [SEK: Record profit, higher EPS, and improved margins driven by automation and efficiency gains](https://longbridge.com/en/news/296546490.md) - [Xero expands AI integrations with Microsoft 365, Claude and ChatGPT to bring live accounting data into workflows](https://longbridge.com/en/news/296373433.md) - [What does Europe’s AI lag mean for the region?](https://longbridge.com/en/news/296510589.md) - [Goldman Sachs Says This 1 Stock Is Set to Be the Biggest AI Productivity Winner](https://longbridge.com/en/news/296259340.md) - [Argentum AI Announces Expansion of Global AI Factory Platform and Leadership Team](https://longbridge.com/en/news/296508397.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**