Investing amid an AI inflection point – our CIO autumn update

AI is one of several structural changes underway, to which we must adapt on behalf of our clients – and future generations.

In our CIO autumn update, teams from across LGIM assess the key implications of AI for our clients. Our key takeaways include:

• Some companies are likely to find their business models profoundly challenged, just as others gain from AI-driven efficiencies
• Equity indices are more likely beneficiaries than credit markets
• The information and computing power required are likely to boost the prospects for data centres and renewable electricity generation

We also touch on the macroeconomic implications. And because AI is just as likely to disrupt our own industry of asset management as any other, we lift the veil on research our traders have undertaken to assess how the technology could deliver long-term benefits for clients.

In addition, we highlight the approach taken by LGIM’s Investment Stewardship team to engaging with companies on the safe development and deployment of AI.