Investing Ideas

Artificial intelligence: Opportunities beyond the tech sector

Utilities, several services segments, and industrials all represent potential AI-related plays.

By: Tom Rollins Michael Hickey

Updated: 7/11/2024

Key Takeaways

The use of artificial intelligence appears to be broadening across a range of industries, and across market cap and capital structures, as companies seek new ways to gain efficiencies and competitive advantages.
Several infrastructure investment themes related to AI buildouts, including among utilities, have driven market performance in the sector.
Professional services has embraced the use of AI at more than double the overall rate, which is why several Fidelity portfolio managers have focused their attention mainly among services sectors.
The industrials sector also appears likely to increase its AI adoption in the coming years.
Active managers at Fidelity continue to rely on bottom-up analysis, although they are tracking corporate AI-related investments that appear likely to contribute to a strong return on investment, operational efficiency, cost savings, and/or higher profit margins.

Get the full white paper

Artificial intelligence: Opportunities beyond the tech sector

Next steps to consider

Domestic Equity

Target your clients’ investment needs with our broad lineup of domestic equity solutions.

Learn more

Sector Industry

Sector/Industry

Target specific segments of the economy with our full spectrum of sector funds, ETFs, and other solutions.

Learn more

Thematic Investing

Help align your clients’ portfolios with their interests with our thematic investing options.

Learn more

1159375.1.0

5D89B24AAF674F20871ADCA5274780DF

Past performance is no guarantee of future results.

Information provided in, and presentation of, this document are for informational and educational purposes only and are not a recommendation to take any particular action, or any action at all, nor an offer or solicitation to buy or sell any securities or services presented. It is not investment advice. Fidelity does not provide legal or tax advice.

Before making any investment decisions, you should consult with your own professional advisers and take into account all of the particular facts and circumstances of your individual situation. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in these materials because they have a financial interest in them, and receive compensation, directly or indirectly, in connection with the management, distribution, and /or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services.

Registered investment products (including mutual funds and ETFs) and collective investment trusts managed by Fidelity Management Trust Company (FMTC) are offered by Fidelity Distributors Company LLC (FDC LLC), a registered broker-dealer. Fidelity Institutional Asset Management (FIAM) investment management services and products are managed by the Fidelity Investments companies of FIAM LLC, a U.S. registered investment adviser, or Fidelity Institutional Asset Management Trust Company, a New Hampshire trust company. FIAM products and services may be presented by FDC LLC, a non-exclusive financial intermediary affiliated with FIAM and compensated for such services.

Before investing have your client consider the funds', variable investment products', exchange-traded products', or 529 Plans' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or a summary prospectus, if available, or offering statement containing this information. Have your client read it carefully.

The use of the term "advisor(s)" throughout this site shall refer to both investment advisors and broker dealers as a collective term.