Good Morning Team.
I want to take 10 minutes of your time to talk about Pri0r1ty AI (LON:PR1).
The company launched via a SPAC just before the New Year at an issue price of 13.5p per share sporting a market capitalisation of circa £13 million, raising £905,000.
Fast forward a couple of months and the share price has fallen to 5.5p with a market cap of around £5.3 million - where it now seems relatively steady.
If there’s a lesson to be learnt here: lock-in agreements aren’t real. There’s always a way to wriggle out of them, and because this is the small cap market, no punishment if you find a way to ignore your obligations.
Of course, you do have to spend the rest of your life as an outcast - or persona non grata - on the wider scene. I hope it was worth it.
Anyway, I wanted to chat about PR1 now because with the bottom in, it looks like a decent speculative play in the artificial intelligence space, which is a space where it’s pretty difficult to fail.
A good comparator at this stage is GenIP. The company was spun off from Tekcapital on 2 October 2024 at an IPO price of 39p; it then went through similar price action as insiders sold out (regardless of any official reasons, this seems to be what was in play).
I covered the stock at 25p for Kemeny Capital on 23 October - it then briefly fell to 17p before bouncing to trade back at its IPO price as of today. Keep an eye out for the next TEK spin-off, Guident, because that’s another decent opportunity.
I’m hopeful that PR1 will see similar price action now that the share price seems to have steadied.
Let’s dive in.
Pri0r1ty AI strategy
I don’t pretend to be an expert in AI but in this particular area, I would venture that I speak with a voice of authority - I work in the middle of a Venn Diagram of copywriting, PR and SEO - and perhaps understand the PR1 business case better than most.
So here’s the lowdown.
PR1 argues that companies spend too much on ancillaries - PR, IR, non-execs, partnership agencies - with too little to show for it in return. For context, it’s not uncommon for small cap companies (private or public) to spend in excess of £20-30k a year on ancillaries.
Ergo, the team decided to build an artificial intelligence sales-as-a-service (AI SaaS) platform designed from the bottom up rather than top down - in other words, so that where the NASDAQ titans are trying to deliver the next big thing, PR1 is trying to ameliorate the pain points for SMEs, to deliver better outcomes through cost reduction and time efficiency.
Of course, an article like this isn’t something Pri0r1ty can deliver. It’s too complex and requires original thought - something AI is not capable of just yet. But for many simpler tasks, SMEs can use PR1’s platforms to deliver a better service at a fraction of the currently associated cost.
For context, the SME ancillary market is worth some £60 billion in the UK - and the argument is that much of this capital spent on SEO, social media management and management consultancy could be spent on building businesses instead.
The problem PR1 has identified is that most professional advisers sell their own solution as a fix all - which never works because of the bias inherent in each adviser’s opinion. For example, a social media manager will always attempt to make the solution to all problems a social media issue - which is bound to be less than efficient.
On the other hand, PR1’s platforms allow companies to change their strategy according to the changing needs of the business. One month, you might want a focus on shareholder interaction, and another, building an online community. The idea is that the software evolves itself to benefit your company, so that it can deliver actional insights to diagnose issues and then deliver a bespoke, measurable outcome.
Currently, the company focuses on IR/PR, data sharing and onboarding - and is fully capable of delivering these verticals - but additional partnerships and other areas are going to be launched within first six months of the year. The first (Funding Circle) has already been implemented.
In terms of management, Dan’s been around for years - and has built lots of small tech projects when working in capital markets, in addition to working with the likes of Worldpay, Sony and Nike.
James is part of the small cap market furniture. Philip Adler was with IG when it hit FTSE 250- and Karen Hollis is a SaaS specialist who has sold two SaaS businesses in the last 20 years for significant double digit millions.
Understanding the Unique Value Proposition of PR1
The Foundational Dilemma: Mass Market vs Niche Approach
When developing PR1, the company faced a critical decision: should it create a generic, mass-market product at a low price point or opt for a highly specialised solution for a small, high-value market segment?
The team has tried to bridge this gap by designing a scalable platform that can cater both to individual entrepreneurs and to multinational corporations. This required a fundamental shift in how software services approach user needs—starting with problem diagnosis before prescribing solutions.
Unlike competitors such as Sprinklr, which charges $5,000 to $10,000 per month, PR1’s platforms are designed to be accessible to a broad audience by prioritising diagnostics.
Customers need to understand what tools suit their specific needs, so the team first developed a diagnostic tool that assesses their problems before recommending solutions. This ensures that users, regardless of scale, get tailored insights instead of generic service offerings.
FWIW, I suspect PR1 will need to choose between small and medium sized enterprises from their own marketing POV, but that’s a dilemma for another day.
The Interlocking Model: Small Business Context & Larger Platform
PR1 operates through an interlocking model, consisting of:
A small contextual model tailored for individual businesses
A larger overarching platform that integrates data from various sources
A ‘Priority Adviser’ feature that guides decision-making through AI-driven insights
Unlike large-scale AI models such as Google Gemini or ChatGPT, which analyse 1.7 trillion parameters, PR1 focuses on a much smaller and more controlled dataset (1 million to 3 million parameters). During pilot testing, the company experimented with 250–280 million parameters for an AIM-listed company with a vast trading history, with the potential to scale parameters as the company grows.
PR1’s process includes:
Aggregating all publicly available documents, including RNS statements, social media content, and industry reports
Using JavaScript bots to search for missing data
Building a structured dataset in Python
Deploying a natural language processor to allow intuitive querying
Enabling real-time customer engagement with PR1’s website, where users can ask it to explain its own functionality
Where most SaaS providers stop, PR1 continues. PR1 allows the creation of fully customszed data sets for clients. Through community oversight, users can track sentiment, keywords, and topic clustering across five categories:
Product
Industry
Management Team
Finance
General (less prioritised in training models)
Controlled AI Creativity & Deployment
To ensure reliability and predictability, PR1’s creativity is set to a conservative 0.1–0.2 range, making it safe from unpredictable outputs. Users can interact in an AI-driven, human delivered method with PR1 in three ways:
Generic Response System: AI generates automated, empathetic responses (e.g., addressing mining grade complaints), ensuring users feel heard and acknowledged.
Data Training & Deployment: PR1’s triplicate training model ensures deployment across multiple platforms (e.g., Telegram, company website, Twitter and Instagram). If a user asks for a summary and the system does not have an answer, a flag is raised. Within 20 seconds, data can be added, and a response generated in real-time. Impressively, a 40-minute YouTube interview can be processed in just 40 seconds.
Content Transformation: Users can reframe and adapt existing content for their own brand narratives, ensuring customised communication.
Spotlight: Identifying & Managing Brand Sentiment
PR1 offers a Spotlight feature, which proactively identifies public sentiment and areas requiring engagement. A management report can reveal widespread negative perceptions about a product, allowing businesses to strategise their response effectively.
Additionally, as noted above, PR1 categorises insights into product, industry, management, finance, and general topics, prioritising actionable intelligence over noise.
And if there’s one thing we all see on social media, it’s noise.
To prevent bot manipulation, PR1 has implemented air-gapped security measures, introducing a 5–6 second delay between API requests. Additionally, users can manually edit AI-generated content before publication, ensuring quality control and accuracy.
AI-Optimised SEO & Content Integrity
Unlike typical generative AI, PR1’s smaller models produce highly unique content, making it less detectable as AI-generated which helps to improve SEO performance.
This avoids flagging by fraud checkers. For context, even top-tier PR firms like Camarco, with its 560 clients, could not detect PR1’s AI-generated content. This is because PR1’s SEO AI content generation feature includes fraud-checking capabilities, which means that the generated content adheres to natural practices in tone of voice, repetitiveness, and authenticity.
One of PR1’s strongest competitive advantages is its economic moat: users accumulate proprietary data on PR1, making it costly to switch services. As a result, PR1’s churn rate is exceptionally low. Clients remain with PR1 because they would lose critical data and personalised AI adaptations if they moved to another provider.
In other words, the data given to PR1 becomes PR1’s - which means that it becomes difficult to leave the business for a rival, because you then lose first party data access, and 12+ months of optimisation (because contracts last for a year).
AI-Driven Engagement Feedback Loop
Building on this, PR1 continuously improves via a regenerative feedback loop. Every social media post or customer interaction refines the AI’s responses, improving personalisation and engagement over time.
The growing dataset further solidifies PR1’s competitive edge, making it difficult for rivals to replicate its offering. Each time content is posted - whether on Twitter or LinkedIn or whatever - PR1 evaluates the feedback and adjusts accordingly.
PR1 then delivers the evolves responses with unmatched speed and efficiency in data processing:
Press releases: Generated in 20 seconds, assuming data is already in the system
Data rooms: Created in 40 seconds, a fraction of traditional costs
Cross-platform publishing: Instantly distributes content across Telegram, Twitter, LinkedIn, and more
Confidential Messaging: Articles or reports can be placed in the data room and sent securely to selected individuals
Risks to consider
AI-Generated Content Perception:
The key doubt to put to rest is that the AI operates within a highly specialised niche with narrow parameters, making its output less distinguishable from human writing compared to broader language models.
While professionals may still recognise PR1’s AI-generated content, extensive training on a smaller, domain-specific dataset reduces this risk.
And unlike large-scale AI-generated content, which can be flagged by search engines like Google, the company’s model works within a clearly defined and specialised scope. This makes it less prone to detection as it does not produce mass-market, generalist AI content.
Copyright Considerations & Legal Risks:
However PR1 does need to consider:
Potential complaints from original authors if AI-generated output closely resembles their work.
Questions around AI-generated content being derived from other AI-generated material, which may impact originality and ownership.
The risk of copyright claims if generated content is deemed too similar to existing works.
Again, this risk is lowered by the smaller parameters.
Advisor Platform & Content Bias:
Given its low creativity threshold, the AI is unlikely to simply amplify the most enthusiastic comments - and users can manually edit outputs before publication. However, there remains a risk that if the source data is overly biased (e.g., consistently positive about a stock), this could influence the AI’s recommendations. Regulatory oversight, such as Nomad or an alternative regulator, may be required to ensure compliance and mitigate risks.
General Copyright Issues & Jurisdictional Differences:
The UK’s Copyright, Designs, and Patents Act (Section 178) grants copyright protection to works generated by a computer without a human author. However, US law currently does not extend copyright protections to AI-generated works, which could present challenges for expansion into the US market.
A Scalable and Transformative Business Intelligence Solution
PR1 offers a transparent and competitive pricing structure:
£499 per month or £5,000 annually (equivalent to two months free).
This makes it easy to sell as something to try - and once customers are sold on the software, you can then promote add-ons.
Rather than targeting short-term profitability with a small customer base, PR1 is positioned for exponential growth. The focus is on scaling to tens of thousands of users, driving long-term value and positioning the company as a potential industry leader.
Longer-term, PR1 is:
Aiming for 37,000 users and £2 billion EBIT, rather than limiting growth to servicing 100 customers at a high margin.
Prioritising market impact over immediate profits, with the goal of reducing the business failure rate by equipping companies with tools that enhance survival rather than just optimising short-term efficiencies.
Scaling user adoption over margin, with the belief that securing 30,000+ users is more valuable than a smaller, high-margin client base.
PR1 enjoys a large client pipeline, with the ability to scale effortlessly both in terms of user base and technical capacity.
The model is designed for rapid adoption, though growing too quickly could present challenges — particularly if scalability outpaces the technical infrastructure. Despite this, profit margins remain robust at 89-90%, with the primary costs focused on servicing clients.
Institutional Validation & Market Positioning:
Recent updates
On 23 January 2025, PR1 advised it had partnered with Funding Circle to provide SME customers with access to loans of up to £750k, with applications and repayment schedules autonomously managed by Pri0r1ty’s AI-powered Advisor LLM.
Funds are typically settled within 48 hours, offering businesses a fast and frictionless financing solution. PR1 will earn an introducer commission of up to 6.5% on all loans secured through its platform, creating a new revenue stream alongside its core SaaS model.
This partnership strengthens Pri0r1ty’s position in the Growth-as-a-Service (GaaS) market by integrating financial solutions that support business expansion. Leveraging Funding Circle’s experience in £15 billion of SME lending within a £200 billion UK market, Pri0r1ty is well-positioned to scale this offering.
It’s worth noting that PR1 launched to business users in October 2024 - and sported 25 clients as of 31 January 2025. The break-even point is 100 clients, at say £5k per client or £500,000 in revenue.
But if you assume those 25 clients were acquired between October and January (or four months), then even without acceleration then breakeven of 100 clients should be by the end of January 2026 - and given the encouraging noises made by PR1, much sooner.
Get to that magic 100 customers/£500,000 and then you can apply a standard 27x EV/Revenue multiple (I applied the same to GenIP) - leaving a market valuation of £13.5 million - back to IPO price within less than a year.
However, it must be noted any financial projections at this stage are highly speculative given the limited data released by the company and the unknown growth trajectory. This 27x multiple only applies if PR1 hits the target in time - if it takes longer, the multiple reduces.
The bottom line
Pri0r1ty AI is in an exciting position. After the typical AIM shakeout, the share price has stabilised, and the company is now focused on scaling its AI-driven SME services platform. With a clear path to breakeven at just 100 customers and a £500,000 revenue milestone in sight, the business is well on its way to proving the model.
Given the strong market opportunity, high-margin SaaS structure, and potential for rapid adoption, PR1 has all the ingredients for a significant re-rating. If execution continues as planned, a return to its IPO valuation — if not higher — looks entirely achievable within the next 12 months.
This is one to watch closely. The foundation is set and the upside could be substantial - especially if, as hinted, the company is targeting businesses with higher spending needs than £5k per annum.
But that’s an article for next time.