AI-fueled Boom: Who Benefits?

In a recent investment industry survey, nearly 80% of respondents believed that generative artificial intelligence (AI) would have a transformative effect on the global economy.¹ This should come as no surprise as AI sentiment is reaching a near-fever pitch based on the potential of an AI-driven productivity boom. While the prospect of AI has been discussed for many years, a topic that has garnered less media and market attention is the implication of evolving global demographic trends. While these two topics may at first appear to be separate, we view them as intertwined. We believe both factors are likely to be key drivers for the global economy in general, the U.S. economy in particular, and U.S. growth equities as an asset class. Our research points to two key conclusions:

• We believe AI beneficiaries are likely to be disproportionately comprised of traditional growth industries which have the necessary attributes and business models to capitalize on the AI revolution.
• We believe AI productivity boosts are poised to skew meaningfully toward select economies, while other economies may struggle.

1. Source: Capital Economics, “AI, Economies and Markets—How artificial intelligence will transform the global economy.”