AI Investing

AI refers to systems and software capable of performing tasks that typically require human intelligence. These include learning from data, recognising patterns, understanding language, interpreting images, and making decisions. Unlike traditional software, AI systems improve over time through exposure to new data, enabling them to adapt to changing environments and deliver increasingly accurate outputs.

AI can process both structured data (e.g., financial statements) and unstructured data (e.g., social media sentiment, images, and natural language). This versatility allows it to be applied across a wide range of use cases - from fraud detection and medical diagnostics to autonomous vehicles and personalised recommendations.

Artificial Intelligence (AI) is widely viewed as a transformative force across industries. It is driving innovation, operational efficiency, and new business models — contributing to what many describe as the Fourth Industrial Revolution.  AI has the potential to significantly enhance global productivity and economic growth over the coming decade.

According to market research cited in the brochure, the global AI market could approach USD 3 trillion by 2034, reflecting an estimated annual growth rate of 19.1%* from 2024. This expansion is supported by increasing demand for automation, cloud computing, data processing, and AI-powered software solutions across multiple sectors.

AI investing spans a broad ecosystem. It includes enablers — companies developing the hardware, cloud infrastructure, and cybersecurity required for AI — as well as beneficiaries that apply AI to enhance their operations in fields such as healthcare, finance, manufacturing, and energy. This diversity allows investors to gain exposure to various parts of the AI value chain.

While AI presents long-term opportunities, it also involves certain risks. These include regulatory uncertainty, data privacy considerations, and the pace of technological change. As you will read in our guide, AI adoption depends on factors such as responsible data use, cybersecurity, and adequate governance frameworks. Investors should always assess these aspects carefully within their broader investment strategy.