The Artificial Intelligence Revolution: Sector Perspectives

Monday 19 August 2024

Research / Market

The Artificial Intelligence Revolution: Sector Perspectives

August 2024 | We believe that Artificial Intelligence (AI) could have over the long-term a positive impact on productivity and GDP growth. However, the impact will not be linear across sectors, especially in the early phases. There will be winners and losers in most industries. To be a "winner" a company needs not only to be an early-mover in terms of investing in AI, but also possess a proprietary data advantage, an existing competitive edge based on market position and an ability to innovate successfully. Otherwise, any advantages from using AI technologies could be competed away. In our view, the future winners are most likely to be found among the existing competitively-advantaged companies.

01 | We believe that Artificial Intelligence (AI) could have over the long-term a positive impact on productivity and GDP growth.

02 | Those companies that are already investing heavily in AI technologies are the most likely to see benefits to revenues and/or profitability.

03 | With rising expectations around AI, the tech sector and US mega caps have outperformed strongly in recent times, leading to higher market concentration.

The Artificial Intelligence Revolution: Sector Perspectives

Important Information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of July 22, 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.

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