Thematic investing focus: how exactly will AI transform the world?

A variety of secular trends are spurring innovation and disruption in the global economy and creating what we believe are compelling thematic investment opportunities. In this series of articles, the thematic team takes a close look at some of these trends, the breadth of the opportunity set and the related risks.

Here, we focus on how investors can access the transformative potential of AI. First of all, we believe investor enthusiasm is well founded. We are on the brink of a technological revolution that has major implications for all sectors, companies, labour, and regulators. However, with great potential comes the need for greater discernment, especially as the pace of adoption accelerates. How can a thematic lens help investors separate hype from reality?