Artificial Intelligence, commonly termed as AI can perform some of the complicated tasks in a better manner than its human creators. AI has been used in various products such as mobile phones, watches, laptops etc. AI systems can also be uiltised to aid in detecting and averting any potentially deadly disease before they occur in a human body. AI has brought transformation in the way people work in the contemporary era. Artificial Intelligence majorly focussed on the 3 cognitive skills comprising of: self- correction, learning and reasoning.
Artificial Intelligence Roadmap
It is estimated that Australia will be reaping the benefits of Artificial Intelligence worth of around $22.17 trillion to the world economy by the year 2030. Moreover, artificial intelligence is changing the quality of life for both the present and next generations to come.
According to an independent federal government agency responsible for scientific research, CSIRO or Commonwealth Scientific and Industrial Research Organisation’s Data61 and AlphaBeta, digital technologies (including AI) have prospective of worth $315 billion towards the Australian economy by the year 2028.
According to the CSIRO’s report, the government and industry must work together to develop more Artificial Intelligence specialists, ranging between 32,000 - 161,000 by 2030. Overall, the country needs to train and educate Artificial Intelligence expert workforce to meet the current and future operational needs of the industry. Besides, schools, colleges and training institute play a great role in training the worker at all stages.
On 28 January 2020, S&P/ASX 200 Information Technology (Sector) last traded at 1526.5 points, with a fall of 1.51 per cent compared to the last close. Moreover, S&P/ASX 200 benchmark index last traded at 6994.5 points, slipping by 1.4 per cent from its previous close.
How Artificial Intelligence affects the lives of the Australians?
A new technology like AI feels scary and distant to the Australians, but it is already in use and helping the people on a regular basis. Let us see how the AI will help the Australians in the coming decade;
Helping people with Impaired vision
More than 575,000 Australians are presently surviving with vision impairment, and Artificial Intelligence is making advances in finding such conditions and contributing towards the development of new technologies to restore sight. An example of it is the development of bionic eye, which can restore the sense of vision and other vision associated conditions.
Helping Senior Citizen
Approximately 3.8 million Australian population is over the age of 80 years and most of them are living in a care facility. AI aids the senior citizens of Australia to stay in their houses for a longer duration. The old aged people can make the use of sensory systems using the computer vision installed at homes to supervise movement and detect doubtful behaviours like falling down or lack of movement, which would immediately lead towards calling for assistance. The robotic devices have been developed to help the seniors in their day to day operations.
AI Helps to connect Buyers and Sellers
Through the combination of finance and technology, AI can help create a platform where buyers and sellers can meet and process their large volume of transaction digitally through various apps or software. This platform provides a convenient way to buy and sell goods and services digitally.
Helpful for Economy, Business and Industries
AI can become smarter over a time period with deep and machine learning and a benefit the economy. Robots and Artificial Intelligence would aid individuals perform their tasks efficiently and effectively. The mixture of man and machine helps to cut down the probability of human error and study historical data to cut the costs.
Let us discuss a stock from the Information sector - Dragontail Systems Limited and its recent updates.
Dragontail Systems Limited (ASX: DTS)
Dragontail Systems Limited utilises artificial intelligence technology in its Algo system, which completely automates the kitchen flow blended with the procedure if dispatching drivers. DTS is into R&D of software for clients in the Quick Service Restaurants space.
Dragontail signs Non-Binding Term Sheet for 20 Million
On 22 January 2020, the company signed a non-binding term sheet with Alceon Liquid Strategies Pty Ltd, Eldridge Industries and Goudy Park Capital LP to raise $20m via the issue of convertible preference shares.
A few highlights of the term’s sheets are as follows;
- Eldridge Industries has an intention to lead the round with an investment of $10.5m, and it is also expected that the company will serve as a catalyst and facilitator for DTS’ entry into the USA.
- Goudy Park Capital LP is expected to provide a further investment of 5.5 million and the balance of $4m by Alceon Liquid Strategies Pty Ltd.
- The preference shares are issued for a price of $0.1406, representing a 26 per cent premium to the 30-day volume weighted average price.
- The funding would support the projected major expansion into the USA, including sales and marketing support.
- It is the company’s largest funding round since inception and will enable it to expand its operations globally and build on the strong success and results achieved during 2019.
- The funding is subject to various conditions such as finalisation of confirmatory due diligence and negotiation of definitive legal agreements as well as required approvals from the shareholders.
- The preference shares are convertible at any point of time with an initial conversion ratio of 1 Preference Share to one Dragontail ordinary share.
- Preference Shares has a preferential right on any dividends paid on the Company’s ordinary shares.
Dragontail goes live in USA
On 17 January 2020, the company announced that it is going live in the USA with the first store to integrate the power of the Algo kitchen delivery and optimszation system with the functionality to use drivers from leading food delivery aggregator, DoorDash.
The company is launching it at its existing Algo customer i.e. Papa’s Pizza in Galveston Texas. The launch follows conclusion of an intensive period of integration work between DoorDash and Dragontail. DTS’ technology will allow the direct kitchen to boost customer optimisation. Also, Algo’s AI algorithm, automatically compares and recommends, on the basis of pre-determined business considerations in order to maximise customer satisfaction while minimising the restaurant costs.
The company is confident that this development will open up more opportunities for it in the USA. As part of the Algo’s continued development, QSR or Quick Service Restaurants customers can also use the unique Driver Sharing module that enables adjacent stores to share the same pool of drivers.
The company’s financial performance for Q3 FY 19 can be viewed here.
The stock of DTS last traded at $0.140 on ASX on 28 January 2020, dipping by 6.667 per cent from its previous close. The company has approximately 248.88 million outstanding shares and a market cap of $37.33 million. The 52 weeks low and high value of the stock is at $0.083 and $0.265 respectively. The stock has generated a negative return of 6.25 per cent in the last six months.
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