Schroders: AI has long term investment value

Artificial Intelligence (AI) is rapidly reshaping investment strategies and market trends, offering a myriad of opportunities for both private and public market investors. In a recent interview on CNBC Africa, Stuart Podmore, Investment Propositions Director at Schroders, highlighted the long-term value of AI in the investment landscape. Podmore emphasized the importance of smart investors looking beyond the hype and capitalizing on investment opportunities in both private and public markets. Podmore discussed the potential of AI in public markets, citing the example of NVIDIA, a leading player in the tech industry. He emphasized that the future prospects of companies like NVIDIA remain promising, particularly in the realm of AI and computational technologies. Podmore also emphasized the significance of private markets and the application layer of the tech stack, where private equity investors see substantial value. Furthermore, Podmore delved into the role of AI in asset management, predicting greater efficiency, productivity, and innovation within the industry. AI's integration with desktop tools and data analysis processes can streamline operations, leading to improved services and enhanced value for clients. The interview also explored the concept of the '3D reset,' encompassing deglobalization, decarbonization, and demographics. Podmore highlighted the transformative potential of AI in addressing these structural trends, offering innovative solutions in supply chain management, sustainability, and demographic challenges. He underscored the role of technology and innovation in driving economic growth, as evidenced by recent government commitments to fintech and technology-based initiatives. In concluding the discussion, Podmore reiterated the transformational impact of AI, stressing its strategic importance for governments and regulators worldwide. He acknowledged the challenges posed by rapid technological developments, emphasizing the need for proactive measures to harness the benefits of AI while mitigating risks. Podmore also alluded to the growing role of AI in sports, suggesting that cricket and other sports could benefit from enhanced data-driven insights and AI-driven strategies. As AI continues to revolutionize investment practices and reshape market dynamics, stakeholders across various industries are poised to leverage its unprecedented capabilities for sustainable growth and innovation. The evolving landscape of AI presents a vast array of opportunities for investors, asset managers, and policymakers alike, heralding a new era of transformative potential and strategic relevance in the global economy.