How AI could evolve into a multi-year investment theme

Broad economic productivity contributions resulting from AI may take years.

• Why AI matters to investors: It could eventually reshape the tech sector and drive future corporate revenue and profit margins. Should its contributions to higher productivity exceed current expectations, it could counteract rising costs that threaten future market returns.
• AI as an economic game changer: AI is poised to become a secular trend. In an era of deteriorating demographics and subdued productivity, even a modest productivity boost from AI could support stronger economic growth.
• What prior technologies suggest for AI: Historical data suggests that a move from 5% to 50% adoption rate for new technologies often took multiple years, sometimes more than two decades. Modest initial productivity gains became more substantial as adoption rates approached 50%.