The AI revolution gathers pace: new possibilities albeit creative disruption
In 2026, investors are increasingly pricing the Good, the Bad and the Ugly from accelerating AI progress. The fast pace of development and rollout of new AI tools promises to expand the possibilities of technology, while boosting productivity and driving greater innovation.
The flip side is the threat of creative destruction to swathes of well-established industries, undermining stable business models and questioning the future of highly-paid white-collar jobs. Investors have rapidly differentiated between i) technology hardware suppliers which benefit from huge AI data centre investment, and ii) technology and service companies at risk from AI disruption to their core business models. We see several opportunities emerging from this AI disruption selloff.
Our recommendations
A theme focused on the next stage of AI and what it will require.
- Power generation, transmission infrastructure, energy storage (batteries)
- Nuclear power
- High-end chips designed for data transfers, storage and computing; sensors
- Certain metals and special materials, such as copper, lithium, aluminium, titanium, lightweight composites, some rare earth elements
- Efficient cooling systems, water-related technologies
- Cybersecurity
- Robotics and humanoid-related hardware and software
- New (agentic) AI applications in healthcare, finance and other industries
Key risks
- AI adoption and monetisation are slower than expected, especially if some bottlenecks mentioned in this theme are complex to resolve.
- Massive investment by hyperscaler companies in AI may result in poor returns on investment due to intense global competition. If returns on investment are lower than anticipated, the rollout of AI might be delayed.
- A recession could lead to reduced AI budgets, potentially hindering the progress of AI implementation and slowing down the realisation of the potential benefits.
- Security aspects likely to become more important in the whole AI ecosystem.
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