BlackRock, a leading asset management firm, has released a report that highlights the potential of artificial intelligence (AI) to drive returns in the current and future markets. The report found that the S&P 500 gains have become increasingly concentrated in a few tech stocks, surpassing levels seen during the 2000s tech boom. BlackRock believes that AI can be a major catalyst of returns even in difficult macroeconomic conditions and that its applications could disrupt entire industries. BlackRock sees AI as a powerful force in the markets and advises investors to recognize its return potential.
Importance of Data in AI: BlackRock’s Mid-Year Outlook
Asset management giant’s mid-year outlook report highlights data’s importance in AI and identifies potential technology beneficiaries. According to the report, companies with extensive proprietary data can leverage it effectively to develop innovative models. BlackRock Investment Institute also has an overweight allocation for AI-related shares in developed markets. This report is a sign of the growing importance of AI and the potential for companies to benefit from it. Companies that are able to unlock the value of their data could be the biggest winners in the AI space.
Considering AI-driven Productivity Gains in Portfolio Decisions
BlackRock advises investors to focus on specific sectors in volatile and high-interest rate environments. AI boosts productivity for high-cost and automatable tasks, but white-collar jobs may face risks. Bitget has pledged $10 million for the development of the Fetch.ai ecosystem, and JPMorgan is reportedly developing AI solutions. Investors should consider the potential of AI-driven productivity gains when making decisions about their portfolios.