Straker rides the AI wave as financial services infuse tech into client offering
- Straker set to benefit as professional and financial services industries start to infuse AI
- Straker’s profitability further improved last quarter with record Gross Margins and EBITDA
- The company’s robust financial position has paved the way for a share buyback program of up to 3.5 million shares.
Special Report: Recent insights from a number of global AI events show the professional and financial services industries will be more focussed on the potential of generative artificial intelligence (AI) in 2024 than ever before.
And as industries seek innovative solutions to streamline operations and enhance efficiency, the ASX’s only pure play AI translation company, Straker (ASX:STG), stands to benefit.
Founder and CEO, Grant Straker, says while generative AI is still relatively novel, it will transform some offerings, enhance others and create new ones.
Straker’s joint development of the ISO Verify model with IBM exemplifies the company’s ability to use its latent AI expertise to devise innovative AI solutions for enterprise customers, creating synergies that enhance workflow efficiency and quality thereby cutting client costs.
“There are few areas that can’t benefit from generative AI,” he said.
“The recent AI Summits in New York and Osaka shed light on emerging use cases within organisations. While content generation plays a role, the spotlight is on AI compliance and governance for larger organisations when considering their AI strategy. This aligns perfectly with Straker’s forward-looking approach, positioning them as a key player in an evolving market.”
Attended by some of the world’s most recognised names, including McKinsey, EY, IBM, JP Morgan and Pfizer, the AI Summit focused on the evolving commercial applications of generative AI.
The AI grapple continues
Despite the growing interest in AI, Straker says many companies are still grappling with how to effectively implement it. The predominant focus remains on automation and efficiency-driven outcomes.
Straker not only recognises this trend but has already offered its first AI driven application outside its core translation offering that resonates strongly with organisations worldwide – the Straker Verify platform.
The Verify platform, with an ‘expert in the loop’, automates analysis of critical issues around governance and compliance. In an era where organisations are wary of relinquishing control to AI without human oversight, Straker’s solution has garnered significant attention.
The platform’s waitlist, which has more than 500 global organisations, serves as a testament to the genuine demand for a multilingual, human-centric compliance and quality assurance solution.
At recent global conferences, Straker showcased the potential of the Verify platform as a central hub for clients interacting with various services.
Setting up the guardrails
From content fact-checking to verifying AI translation outputs with human expertise, and auditing internal document policies for compliance, Straker positions itself as an invaluable partner for organisations navigating the complex landscape of AI integration.
The strategic move by IBM to indemnify outputs from its various AI systems aligns with the initial AI regulations released by the EU. This signifies a growing trend of establishing guardrails on AI usage across the globe.
Straker is well-poised to capitalise on this shift, ensuring that its Verify platform adheres to the highest standards of compliance, irrespective of geographical boundaries.
Straker reported a rock solid financial position in its latest results, laying the groundwork for a buy back of up to 5% of the company’s shares on issue. A leading player in the AI language services and technology industry, Straker is the only pure-play technology-driven language service provider on the ASX.
The company showcased a strong financial performance in the first half of the fiscal year 2024, marked by a significant operating cash flow turnaround of over $4 million compared to the prior corresponding period (PCP).