3 Australian AI Stocks To Watch With Up To 29% Revenue Growth

AI is no longer just a buzzword after an OpenAI agent accessed an Australian health portal; it is now a live security and infrastructure issue for governments and businesses. That kind of real world test puts Australian AI problem solvers on the radar. Smaller listed players working on machine learning, automation, or data intelligence could benefit. This article highlights three Australian small cap AI stocks from our screener worth knowing about.

The three AI small caps in this article are only a sample, and the full screen surfaced 6 more Australian companies with equally compelling narratives that are not covered below. To go deeper on this investing idea, head straight into the AI Small Caps screener to identify, filter, and analyze the highest conviction opportunities in minutes.

Pureprofile (ASX:PPL)

Pureprofile is a Surry Hills based research and data intelligence business that helps brands and agencies run online studies and access insights through its own self service platform. Most of its A$65 million revenue comes from Data & Insights services, and it has a market cap near A$35 million.

Pureprofile puts AI to work through its Datarubico platform, which uses machine learning to generate synthetic survey responses, automate audience targeting, and pull social insights for marketers. The company is already profitable, and those AI driven tools could matter a lot more if one unresolved constraint on how fast they scale shifts.

If that constraint shifts in Pureprofile's favour, the analyst forecasts for Pureprofile can show whether expectations are already racing ahead of the reality.

Dicker Data (ASX:DDR)

Dicker Data is a wholesale distributor of IT hardware, software, cloud, and IoT products, with about A$2.6b in wholesale computer peripherals revenue and a market value near A$2.8b. Its role supplying AI capable PCs, servers, storage, and data center gear links it directly to enterprise AI demand.

Dicker Data matters for this AI Small Caps screen because it sits at the plumbing end of the theme, supplying the Copilot+ PCs, GPUs, and data center gear that turn AI ideas into running systems for Australian and New Zealand enterprises.

"Expansion into AI infrastructure and solutions, including the delivery of Australia's first AI factory in partnership with Dell and further AI pipeline opportunities, aligns the company with enterprise digital transformation and creates potential upside for advanced solutions revenue."

What happens to Dicker Data's earnings profile if a single pressure point on how those large, low margin hardware deals are priced starts to move?

That pricing pressure point is exactly where the story could shift, and the full narrative for Dicker Data shows how hardware margins, AI services and shareholder outcomes might be decoupling.

Data#3 (ASX:DTL)

Data#3 is a Brisbane based IT solutions provider that helps enterprises modernise cloud, security, and workplace systems, with AI driven analytics and Microsoft 365 Copilot services giving it a clear link to the AI Small Caps theme.

Services contribute about A$276 million of its roughly A$907 million revenue, with Infrastructure Solutions at about A$553 million and Software Solutions near A$78 million. The A$1.75b market cap reflects a diversified but Australia focused technology services group.

Data#3 matters for this AI Small Caps screen because its Copilot and analytics work turns generative tools into everyday workflows for mid market and government clients, plugging AI into real budgets rather than hype.

"The accelerating shift by customers to multiyear subscription and as-a-service models (evidenced by recurring revenue increasing to 69% and rapid expansion in Device-as-a-Service) positions Data#3 for higher, more stable, and predictable revenue and margin growth over time as the mix continues to improve."

What happens to Data#3's earnings profile if one quiet change in how those recurring contracts are structured starts to reshape pricing power?

That kind of contract shift is exactly what sits at the center of the full narrative for Data#3, which unpacks how recurring terms could accelerate or quietly cap Data#3's AI upside.

Seeking Alternatives Before The Crowd?

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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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