Highlights: AI-related stocks have experienced quite a bit of volatility recently, but the structural story remains very promising. That said, investors need to look at the entire AI ecosystem and not just the US large cap stocks: opportunities are global, across large and small caps, across industries and also in private markets. Our focus has moved from AI enablers towards AI adopters and into themes such as intelligent automation, digital infrastructure, cybersecurity and next gen medicines.

• AI has seen two major catalysts that hugely accelerate the innovation and widen the applications. The move from task-based models to reasoning models and agentification will make applications much more useful and versatile. Secondly, DeepSeek’s model increases the competition and lowers the costs, which should speed up adoption.   
• AI is already helping companies increase efficiencies and launch new products and services. And as machine intelligence moves closer to human intelligence (i.e. ‘singularity’), the applications will become even more useful. We believe this will raise productivity and economic activity, while helping to keep inflation in check. In other words, while some people worry that tariffs are stagflationary, AI should have the opposite effects.   
• We take a broad-based approach to investing in AI. From a geographical perspective, we see opportunities beyond the US, particularly in China, where internet leaders, ecommerce and AI-related tech are clear beneficiaries. Global data centre demand should continue to grow rapidly, and with it, the demand for diversified electricity sources, cooling, data security and communications services. 
• We see AI as a democratiser, helping SMEs and private sector companies to compete with larger rivals.