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How to realise AI’s investment potential – without getting caught in the hype

Forward-looking analyses and bottom-up research can help investors pick companies and realise the potential of a multi-decade theme

UNLESS you have been living off-grid in recent years, artificial intelligence (AI) will need little introduction. While AI itself is nothing new, the increasing availability of generative AI and large language models (LLMs) to the public, and their first steps into commercialisation over the last year have thrown the sector even further into the spotlight.

The long-term, game-changing potential of AI makes it a clear fit for thematic investing. After all, the latest tools are multi-purpose and easy to use, meaning they could transform a wide variety of activities and industries over the coming decades. However, investing in the sector is not without challenges.

AI adoption has progressed at unprecedented...

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