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How much of a challenge is AI to IVE Group?

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Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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    How much of a challenge is AI to IVE Group?

    Hi In your Monday report you mentioned that AI poses some structural challenges for IGL and James made the same sort of comments at an Auzbiz event late last year. How much of an impact do you think AI will have on IGL and do you think these might start to impact the company in the short term or are these likely to be longer-term impacts? The share price seemed to get excited when they released their results on Monday but then it fell back - maybe the market is also concerned about the impact of AI? Cheers, Carl

    Answer

    Hi Carl,

    It’s very hard to tell what the impact will be, however we’ve made the comment a few times as you rightly point out, essentially that their operations do lend themselves to being disrupted by AI. While we think that could be the case, there are no signs of it happening at the moment and it’s really just an observation based on their current business model.

    It’s our job to think about risks and for Ive Group (IGL), the balance sheet is the biggest near term issue, but that is likely to improve in the 2H. We doubt AI will have an impact in the short term, although it’s really hard to know for sure. To be clear, we have not seen/heard/experienced any AI related headwinds for IGL yet, but it does factor into our thinking on the stocks around potential risks.

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    IVE Group Ltd (IGL)
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