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AI impact ‘won’t be linear’, with some sectors set to benefit more than others: Amundi
The impact artificial intelligence (AI) will have on the markets won’t be straightforward, according to a new whitepaper from global investment manager Amundi Investment Solutions, with certain sectors that are either well positioned or well invested in AI solutions to gain the most benefit.
The analysis, from Amundi’s latest whitepaper, The Artificial Intelligence revolution”: Sector perspectives, details just how fragmented the impact of AI will be. While no sector will remain untouched by AI, it says, it will affect particular sectors in a greater way and at a different time.
In healthcare, for example, the strongest impact will occur in the medium term as AI accelerates the discovery and distribution of new drugs, with faster testing periods, more accurate diagnostics and even personalised therapies. In financial services the impact will come quicker as AI streamlines operations and enhances risk management in the near term. And in IT, just as quickly, research and development processes will ramp up along with cloud computing, data management and cyber security – all fuelled by AI.
On the opposite end of the spectrum, other sectors are forecast to only marginally benefit from AI, including materials and real estate. Here, general efficiency gains are on the cards yet the impact will not be felt as greatly.
Despite the sector forecasts, Amundi notes that companies – especially those that have enough capital to deploy meaningful capital – have the power to forge their own AI destiny. Yet throwing money at AI is fraught with peril, and these companies also need to figure out the best use case for it within their own paradigm.
“We believe that Artificial Intelligence (AI) could have over the long-term a positive impact on productivity and GDP growth,” the white paper states. “However, the impact will not be linear across sectors, especially in the early phases. Those companies that are already investing heavily in AI technologies are the most likely to see benefits to revenues and/or profitability, but disappointments will happen given increased and new competitive pressure as well as the emergence of questionable business cases in light of the involved costs.”
‘No need to compete’ for advisers
And while investors will do well to follow the fortunes of these sectors, Amundi’s advice for financial services providers like advisers and accountants is to start working with the companies that produce AI solutions to bolster their operations and stay at the pointy end of industry best practice.
The scale and pace of change is the stand out theme from the study behind the white paper, explained the chief technology officer at Amundi Technology, Benjamin Lucas (pictured).
“We are at the edge of a precipice with massive structural changes coming in ways that we haven’t seen before,” Lucas said, adding that trying to plan for five to ten years is problematic at this point. “The speed at which the landscape is changing is phenomenal and each of us is going to have to deal with this dramatic shift in time frames.”
Financial services firms will need to address “broad restructuring” in the way they do business, Amundi says, and working with tech providers should be accepted as the default operation method when it comes to AI.
“The other distinguishing feature of the companies that are outperforming is that they realise they can’t work in isolation from the big tech firms,” Amundi stated. “Financial services companies won’t outcompete Big Tech when it comes to AI scientists or investment in AI. But there’s really no need to compete.”
