Intuit’s (INTU) shares rose on Tuesday morning, after the tax and accounting software firm disclosed a multi-year partnership with heavyweight startup OpenAI (PC:OPAIQ).
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The collaboration will see Intuit’s platforms integrated into OpenAI’s ChatGPT to serve individuals and businesses directly on the popular chatbot. The software group also revealed that it has signed a $100 million multi-year contract to bolster its proprietary generative artificial intelligence system with OpenAI’s advanced models.
Intuit Taps OpenAI for Agentic AI
The integration plan is the latest in OpenAI’s recent deals to turn its app into an all-encompassing “super app.” OpenAI, which is eyeing a $1 trillion valuation by late next year or early 2027, recently integrated a series of apps into its platform, including streaming platform Spotify (SPOT), online real estate site Zillow (ZG), and online learning provider Coursera (COUR).
Under the $100 million agreement, OpenAI will help introduce agentic AI into Intuit’s platforms. Agentic AI acts as ‘agents’ that can be activated through text-based prompts to independently complete tasks such as forecasting cash flow, preparing taxes, or managing payroll, Intuit explained.
ChatGPT Integration Targets Individuals and Businesses
On the integration, Intuit said financial data from its platforms will be made directly available in ChatGPT to empower individuals and businesses. These include its online tax software platform TurboTax, free credit score monitoring software Credit Karma, accounting software for small businesses QuickBooks, and email marketing and automation platform Mailchimp.
For individual users, the goal is to provide them with personalized financial insights, recommendations, and practical actions on topics such as credit cards, personal loans, mortgage loans, and tax refunds, among others. Similarly, businesses will be able to access tailored information to help raise their revenue and profitability, riding on real-time business data.
With the integration, companies will be able to execute tasks such as creating campaigns, getting AI-generated invoice reminders, and finding personalized loan options. The software group expects the integration to help boost its relationship with its existing user base of approximately 100 million.
Is INTU a Good Stock to Buy?
Across Wall Street, Intuit’s shares currently have a Strong Buy consensus rating based on 16 Buys and one Hold issued over the last three months. Moreover, the average INTU price target of $831.40 indicates over 27% upside potential from the current trading level.
