Many investors may not realize that the term “artificial intelligence” (AI) was coined back in 1956 by computer scientist John McCarthy, on the vision of machines mimicking human reasoning. Fast forward to present day, in which the convergence of big data, computing power and deep learning algorithms have ignited rapid progress in productivity enhancements across several industries and sectors. That said, we believe the eye-catching news headlines about recent AI advances can obscure the big picture – that AI is still in the early days of its potential influence. Akin to the decades-long ripple effects of the internet’s debut in the 1990s, the impacts of AI will transform markets, industries and society for decades to come, in our view.

As with other revolutionary technological advancements in history, the proliferation of AI has been met with a mix of enthusiasm and uncertainty. For investors, there is a structural transformation with long-term implications for productivity, profitability and investment portfolios. While thus far, much of the AI spotlight has aptly focused on the United States, China has quietly become a leader in important areas of AI patents, human capital, advanced manufacturing and aspects of AI infrastructure.

In this edition of Strategy Insights, we explore key considerations pertaining to AI investment opportunities across the globe. Overall, we believe the transformative promise of AI and its related technologies is robust, and the investment opportunity is highly favorable.

FOR AN IN-DEPTH LOOK
Strategy Insights Fourth Quarter 2025