AI Stocks To Watch In UK Enterprise Software Right Now

Services sector strength in the United States has kept demand for artificial intelligence tools and infrastructure in clear view. Companies are still spending to improve productivity, even as they watch inflation and rates. That keeps AI stocks screeners relevant for investors who do not want to miss the next phase of adoption. This article highlights three AI focused stocks from the screener that may warrant closer attention.

The three AI stocks that follow are only a sample from the broader opportunity set, and the full screen surfaced 15 more companies with equally compelling stories that are not covered here. To identify and analyze the highest conviction ideas across semiconductors, cloud, software and more, head straight into the Artificial Intelligence/ AI Stocks screener.

Cerillion (AIM:CER)

Cerillion supplies billing, charging and customer management software to telecom operators and subscription businesses worldwide, and its strongest AI link is the Business Insights analytics platform, which uses machine learning to help clients monetize and personalize services more effectively. The company generates about £22.6 million from Software, £17.8 million from Services and £2 million from Other activities, giving investors a sense of how much of the business is tied to software driven recurring revenue. Cerillion has a market cap of roughly £282.4 million.

Cerillion offers direct exposure to how telecom and subscription providers are trying to turn AI into cash, using tools such as its Business Insights and Enterprise Product Catalogue to sharpen pricing, reduce churn and automate more decisions. Analysts highlight revenue and earnings trends alongside strong return on equity, which together suggest a quality software franchise rather than a purely speculative AI story. At the same time, the recent fall in half year revenue and profit, the use of non cash earnings, and reliance on external borrowings mean execution and balance sheet risk remain important factors to consider. For investors evaluating the trade off between AI related opportunities and these pressure points, Cerillion may merit closer examination.

Cerillion’s software engine and AI tools are already helping telecoms chase smarter revenue, yet the real story lies in how its balance sheet and earnings quality fit together. Get the full picture in the Cerillion financial health report

Build your own quality focused AI shortlist

Cerillion and the other two AI stocks in this article all came from a single screener, but the real edge comes when you start shaping your own filters. Use our flexible Screener to mix valuation, growth, balance sheet and risk checks, or jump straight into our curated Investing Ideas if you prefer ready made shortlists.

Bytes Technology Group (LSE:BYIT)

Bytes Technology Group is a UK based IT solutions provider that helps organisations buy and run software, security, AI and cloud services, with its AI link coming from selling AI capable hardware, cloud and software licences and offering consulting that helps customers deploy tools like LLMs. The group reports £220.6 million in revenue from its IT Solutions Provider segment, giving a clear view of a single, broad engine that includes AI alongside more traditional IT spending, and it is backed by a market cap of about £958 million.

Investors looking at Bytes Technology Group get direct exposure to how large enterprises are actually rolling out AI and cloud, not just talking about it. The company is building out AI focused software, cloud migration and cybersecurity services on top of a long standing IT franchise, and analysts point to strong returns on equity and healthy margins as signs that this AI work is rooted in a profitable model rather than a side bet. At the same time, reliance on external borrowings, board turnover and pressure from lower margin public sector deals mean execution missteps or weaker IT budgets could quickly show up in earnings. The real question is whether Bytes can keep tilting its mix toward higher value AI and security projects while managing these pressures, and that is where the investment story gets more interesting.

Bytes Technology Group’s push into AI, cloud and security is reshaping how its single IT engine makes money, yet the full story sits in the margins, cash flows and contract mix inside the analysis report for Bytes Technology Group

AdvancedAdvT (AIM:ADVT)

AdvancedAdvT provides internet software and services across business solutions, healthcare compliance and human capital management, with its AI based healthcare intelligence compliance and accreditation software giving it a clear link to the AI and ChatGPT theme. The company generates about £53.4 million in revenue from Internet Software & Services, primarily in the UK, and has a market cap of roughly £231 million. That puts AdvancedAdvT firmly in the small cap software group, where AI driven products can materially shape the long term story.

AdvancedAdvT may merit closer inspection if you want targeted AI exposure in healthcare and back office software rather than a broad basket of tech. Its AI healthcare compliance engine, low code platform and workforce SaaS products sit inside a business that has grown earnings strongly over 5 years. The latest results show revenue of £53.4 million alongside a sharp drop in net income and margin pressure from one off items. Forecast earnings growth above 30% a year, a P/E multiple that prices in a lot of ambition and balance sheet reliance on external borrowings all raise the stakes. The key question is whether that AI driven compliance niche can support the premium story that investors appear to be paying for.

AdvancedAdvT’s earnings story and AI healthcare niche appear closely connected, yet recent margin pressure and external borrowings suggest a deeper trade off. Explore how these elements relate in the analyst forecasts for AdvancedAdvT

Seeking Alternatives Before The Crowd Moves

Fresh stock ideas can move from quiet to crowded quickly. Spot potential breakout stories while they are still under the radar for now and act now.

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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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