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If you haven’t heard of Unith (ASX:UNT), here’s a basic rundown. The ASX-listed tech company is leveraging the start of the AI boom to its own benefit, an early starter in the AI-powered personal assistant space.
In the simplest terms possible, Unith is creating AI-powered chatbots. But these aren’t the lonely automated chat windows of the MSN era.
Millennials are the most likely to remember SmarterChild, an early-stage chatbot founded in 2000. SmarterChild simply returned pre-programmed replies after a brief delay to replicate the human experience. The fun lasted for about three days.
We’ve come a long way since then, and that brings us into the 2020s, where companies like Unith are now standing back and watching tech behemoths throw billions of dollars at AI.
Unith offers more than just text
Unith goes one step further in the automated assistant game to create realistic human animations – or avatars – with their own inbuilt emotions and personalities to guide users through a range of tasks.
The company had previously targeted healthcare applications but broadened its scope to all aspects of the economy in recent years. Other applications include online e-store assistants to boost sales conversion, as well as educational pursuits, with a strong focus on the children’s app market.
It will be the latter cohort of Generation Alpha who grew up as the first true AI natives. That is further evidenced by a recent development from Meta (formerly Facebook,) which has announced its own AI-powered and avatar-based personal assistant product, Meta AI.
The Market Herald asked Unith CEO Idan Schmorak if he’s worried about the rise of a similar product from a tech behemoth light years ahead. We asked him if his shareholders should be worried, too.
Mr Schmorak says Unith shareholders have nothing to worry about. In fact, they should lean into the groove and keep a close watch on what happens next – confident their holdings are safe.
“On the contrary, shareholders should be excited … the fact that companies like Meta are delving into conversational assistants highlights the growing importance and acceptance of personalised AI experiences,” Mr Schmorak said.
“As the industry shifts towards AI assistants with distinct personalities, it demonstrates that the future of AI is not just about tasks but also about creating relatable and personalised interactions.”
AI story almost too fast to keep up with
Earlier I said Generation Alpha would be AI natives. Just think about what you’d have said if someone made that claim only two years ago. Much like post-COVID geopolitics, the AI story has accelerated from 0km/h to 100km/h with almost no warning.
A large part of the drive behind the technology, which also enabled ChatGPT to enter the fray, is because the cost of training AI neural networks has significantly come down.
ARK Investment’s Cathie Woods highlighted earlier this year that half a decade ago, it would have cost prohibitive hundred-million-dollar sums to have produced ChatGPT. But these days, it’s a lot cheaper.
Possibility for eventual Meta-powered Unith avatars
Those same market forces are those from which was borne Meta AI. Mr Schmorak only sees the product benefitting Unith.
“As Meta AI champions the cause and spreads the word about conversational AI, it will naturally elevate industry awareness,” he said.
“The paths Unith and Meta AI are taking, while distinct, aren’t necessarily divergent. There’s room for intersection.
“As Unith’s platform is built for flexibility, it’s conceivable that a future where our digital humans are powered, in part, by Meta’s conversational prowess isn’t just a possibility but an exciting opportunity.”
The conversational AI market is expected to be valued at up to A$50 billion by 2030, reflecting an annual growth rate of 20 per cent, according to Allied Market Research.
Perhaps the most important to consider for the long-term view is that Meta AI will inevitably be backed by the resources and financial power needed to further advance the AI assistant landscape.
“As the AI conversational market grows, so will its ecosystem of developers, tools, platforms, and applications,” Mr Schmorak told The Market Herald.
“While Meta might cater to a broad audience, UNITH will find and dominate specific niches within the market, especially those that highly value the visual and emotional connections … such as healthcare, compliance and education.
“Unith is actively forging strategic alliances … we’ve onboarded [the] Alliance for Public Health and Ensuring, solidifying our presence across various sectors. Our collaboration with a top-tier tech giant underscores our credibility and capacity in the AI domain.”
Unith has kept mum on who exactly that tech giant is, but, the company is clearly emboldened by Meta AI, and not at all fussed it might steal some of the limelight.
