Company: LiveVerdure
ASX Ticker: ASX:LV1
Sector: Technology / A.I

LV1 Last update – LV1 Board Changes

Edible Beauty Boosts Sales by 52% With AI-Powered Sales Agent, ‘Ava,’

In our last update of Live Verdure (ASX:LV1), we highlighted the significance of the new board appointments, who were chosen to execute LV1’s new strategy of developing cutting-edge, AI-based solutions to create new growth opportunities and streamline costs.  

Well, true to their word, LV1 strategic partner Decidr and their AI-driven solutions, were integrated into Edible Beauty’s existing platform to optimise business processes, improve customer engagement, and drive measurable outcomes.

The Results? 

‘Ava’, which is an AI-powered sales agent, when compared to the previous 12 months of human-powered chat function, resulted in a 52% increase in chat-initiated orders.

‘Ava’ was deployed with no preset workflows or classic logic, and demonstrated its self-learning capabilities by gaining intelligence, synthesising general knowledge from large language models with high-context Edible Beauty data made available by the Decidr architecture. 

‘Ava’ vs Human Powered Onsite Chat 

To demonstrate how effective this technology is, LV1 have compared Ava’s performance over the first month of deployment to 100% of site traffic, against the past 12 months of human-powered chat. 

‘Ava’ meaningfully bettered human-powered on-site chat in every metric.

Ava Provides Considerable Business Optimisation Advantages 

Optimisation  Improvement 
Function  Can operate 24 hours a day as compared to human resources, capturing any out of hours engagement opportunities 
Scaling  As the business grows, Ava can scale simultaneously without the need for increased human resources 
Email collection Ava increased email collection in chat, which provides greater session revenue opportunities, whilst also expanding the customer database which is known to convert to sales over time.
Completed chat sessions Significantly faster response times and greater overall chat completion rates with consumers
Increased orders Expected to increase annual sales of 3-5%, without human involvement
Overhead reduction Current cost saving would equate to 2.5 – 3 full time resources

LV1 Already Looking to Expand Decidr’s AI Technology 

With Decidr’s AI technology proving to be such a success in the Edible Beauty business, LV1 have already evaluated the technologies broad applicability and high replicability, which can be adapted across multiple business functions and industries. 

As a result, LV1 and Decidr have agreed to pursue a more comprehensive licensing strategy, allowing the technology to be deployed on a larger scale. 

In our view, this provides significant revenue opportunities which has also been highlighted by LV1 Chairman, David Brudenell, who stated: 

“Given these results, and significant enquiries being received from businesses and investors interested in the Decidr technology, we are now taking the next step by expanding this technology’s reach to other sectors via Decidr.ai.”

$10 Million MOU Signed with Decidr Group  

With these results, management have already agreed a non-binding MOU whereby LV1 will provide up to A$2.5 million to Decidr.AI to fund the remaining POC stages and further develop and commercialize its AI technology. 

This MOU includes exclusive licensing rights for LV1 to use Decidr’s AI technology and evolve LV1’s approach to AI technology deployment and licensing, whilst setting the stage for broader commercial applications of Decidr technology across multiple industries. 

An additional A$7.5 million is subject to agreed tasks and objectives, and the achievement of key milestones.

LV1 have also stated the MOU is expected to be funded via non-dilutive instruments including existing cash reserves and near-term option conversations.

LV1 Continue to Grow & Optimise Their Business Model 

Despite challenging market conditions, LV1 has been one of the top performing ASX stocks for the past 12 months, and is showing no signs of slowing down.

As the company continues to advance its strategy of applying whole-business AI into the LV1 brands using Decidr technology, this recent announcement and POC demonstrates significant AI enablement opportunities for the group and reduction of classic human costs.

The June 2024 Quarterly Report demonstrated the lowest loss for the company in over six quarters, demonstrating the benefits of AI within the business. These POC areas represent significant AI enablement opportunities for the Edible Beauty business to avoid classic human costs:

What’s Next?

  • Further POC Results – With this announcement detailing preliminary results, we expect to see further results from the Edible Beauty platform, optimising business processes, improving customer engagement, and driving measurable outcomes.
  • M&A Assessments – With successful the POC, we believe it likely LV1will receive enquiries to partner with their AI operating platform via Decidr. 
  • Broader Application – We expect to see the Decidr technology applied to new areas of the LV1 Group, streamlining costs & increasing revenue whilst also creating new growth opportunities 
  • Licensing & Reoccurring revenue – LV1 have moved to secure Decidr’s IP, which we expect LV1 will continue to evolve, using their own business as a use case with the intention of deployment and licensing.