SYDNEY--REA Group's ability to generate value through the use of artificial intelligence has raised the bar for potential acquisitions, the real-estate advertiser's chief executive said.

Almost two years after failing with a US$8.35 billion move for U.K. counterpart Rightmove, REA remains an acquisitive company, Chief Executive Cameron McIntyre said Thursday.

However, McIntyre said the level of return necessary to make an opportunity sufficiently attractive for REA to make an approach has changed since his predecessor attempted to get hold of Rightmove in 2024.

"Things have to stack up and they have to stack up probably more so today than 12, 18, 24 months ago with the emergence of artificial intelligence," McIntyre said in an interview.

"There are opportunities out there clearly, but we've got plenty to do organically ourselves."

For News Corp-controlled REA, that includes the development of AI-driven products and tools, which already include a conversational assistant on its platform that REA said was improving engagement with potential buyers.

It said that 21% of sessions with the assistant in the seven weeks through July 31 had resulted in a high-value outcome for the business, such as a user saving a listing.

REA said proprietary data compiled across more than 30 years of operations was supporting its AI development.

Nonetheless, REA has capacity for inorganic growth. It ended its fiscal year on June 30 with no debt and a cash balance of 366 million Australian dollars, equivalent to US$258.3 million.

REA's strong balance sheet means it also has the ability to respond to any impact that rival Domain's increased marketing spend under the ownership of U.S.-listed CoStar might have on market share.

McIntyre said REA hadn't seen any indication of a meaningful shift in share or audience attributable to Domain's advertising.

Last month, REA said it had agreed to sell its majority interest in REA India, which will remove a drag on earnings when the deal completes in the current fiscal half.

McIntyre said the company was open-minded about which countries it could look to for potential targets.

"We've never sat down and had that conversation around which markets are more appealing," McIntyre said.

News Corp is the parent company of Dow Jones & Co., publisher of The Wall Street Journal and Dow Jones Newswires.