Access Innovation Holdings: Smart ASR takes it to the next level
About the author:
- Author name:
- By Nick Harris
- Job title:
- Senior Analyst
- Date posted:
- 16 April 2021, 4:00 PM
- Sectors Covered:
- Telecommunications, Technology and Financial Services
- Access Innovation Holdings (ASX:AIM) has released its new, next generation product called Smart ASR. This is AIM’s first live captioning product and does not require real time human curation.
- This is a step change in technology efficiencies and takes captioning to the next level. AIM’s Smart ASR solution fills the gap between the cheaper but lower accuracy out-of-the-box ASR and AIM’s high accuracy but more expensive premium captioning. Smart ASR has the potential to make new markets.
- We make no changes to our forecast (login to view price target) or Add recommendation. AIM looks likely to beat Prospectus forecasts. Details will become clearer when AIM release their Q3 update towards the end of April 21.
AIM releases new, game changing product - Smart ASR
This week AIM released a new product which it called “Smart ASR”. This is AIM’s first Automatic Speech Recognition (ASR) product that does not require direct human curation.
Historically AIM has used Automatic Speech Recognition in combination with re-speakers (humans) to deliver fast and accurate transcription. This new product is a step change for the AIM business.
It should allow lower price points (for the end customer) and more importantly for AIM shareholders it should create significant scalability for the AIM business. Smart ASR has the potential to put pricing pressure on AIM’s premium solution but offsetting this, margins should be higher, less labor is required.
We think that, on a net basis, Smart ASR will help AIM grow its market share. It should help AIM grow its share of existing captioning markets as well as create totally new markets for AIM to sell into.
Accuracy matters – Smart ASR fills the gap
AIM’s Smart ASR has been independently audited and delivers a “significant improvement over the performance of standard ASR products in the market”. As we understand it the accuracy of words transcribed sits roughly half way between MegaTechs out-of-the-box ASR and AIM’s premium product.
Out-of-the-box ASR accuracy is around 92%, AIM’s premium high accuracy transcription, using re-speakers, is around ~99% accuracy. AIM’s new product - Smart ASR - sits around 95% accuracy.
How it works
This new product uses third party technology in combination with AIM’s own proprietary software which utilises, Artificial Intelligence, Machine Learning and Automation. AIM has developed this software using a combination of third party software (using multiple MegaTech ASR software as an input).
AIM filter the ASR output using their own software and algorithms which have been refined to provide contextual accuracy and context specific output (automated context relevance filters). Big data is required to train algorithms.
AIM have accumulated over a decade of experience and big data sets which are used to build data dictionaries and grow contextual relevance.
Investment view – Retain Add and target price
We leave our forecasts, target price (login to view) and Add recommendation all unchanged. We continue to see upside risk to AIM’s Prospectus forecasts and our FY21 forecasts.
Management have, in our view, met or exceeded expectations and we expect their Q3 result (due out in April) will show this trend has continued into 2H21.
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