How a new economic regime could influence productivity and impact the strategic asset allocation process?

Dive into the AI revolution! Understand the short-term challenges and long-term gains as artificial intelligence reshapes industries worldwide.

This article is the capstone of the In Silico series, focusing on AI investment opportunities, including both investments to gain exposure to the value chain or deploying AI to increase productivity. We will also discuss the recent run-up in AI-related stocks and how we think about AI investments moving forwards. We…

Could a new regime with shifting trends and sometimes unexpected motives influence productivity and fundamentally reshape the investment-decision process?

The conversation focuses on four areas, the first three of which are from our joint research: (1) US exceptionalism in the economy and markets, including what produced it and whether it’s likely to continue; (2) Artificial intelligence, with a focus on AI’s potential for transformative impacts on productivity, and the…

The complex relationship between financial and mental health has profound implications for workplace productivity, employee engagement, and overall wellbeing.

The rapid explosion of generative AI for general use has captured the global imagination with what the technology might enable. It’s expected to have a profound impact on economic growth by exponentially increasing productivity. That’s because everything today – from culture to consumer products – is a product of…

There are decades’ worth of studies linking corporate diversity with financial performance. That literature, in turn, builds on a body of academic research testing group decision-making, much of which shows that heterogeneous groups make more robust, thoughtful and useful decisions. There is also now a growing body of…

Biodiversity is part of the Earth’s natural capital and considered the cornerstone of a well-functioning planet. The many benefits to humans provided by natural capital are often integral to the provision of clean drinking water, waste decomposition and food productivity as well as being critical for human health and mental…

This working paper explores the tension between rapidly increasing artificial intelligence investment costs and the slower pace of productivity growth

Some of the largest drivers of U.S. equity outperformance cannot be counted upon going forward. A lot depends on the ability of US tech to deliver and AI to unleash productivity across sectors.

Brazil boasts over 100 million hectares of degraded pastures available for agricultural and livestock expansion. This is sufficient to meet the anticipated increase in production until 2040 without cutting a single tree. The strategic recovery and conversion of these pastures presents a significant opportunity to enhance…

Much of the market focus on generative Artificial Intelligence (AI) has been on potential productivity gains and equity market impact. But AI may have important implications for other markets, notably fixed income, via the level of interest rates and bond yields, which we address in this short note.

Across the Americas, low output and productivity growth are key policy challenges. Growth expectations for many countries have fallen in recent years, with Latin America and the Caribbean especially lagging behind emerging market peers. In many cases, total factor productivity growth has been negative for decades. This is…

Inequality may not be an obvious factor when assessing the prospects of a company. Yet it is financially material impacting productivity and well-being. As such, it can make a crucial contribution to a healthy society and stable economy. Equality Lead and ESG Analyst Sindhu Janakiram discusses these issues with Chief Market…

Without substantial investment and innovations in battery storage, small modular reactors, and efficient semiconductors, the electricity supply may lag behind demand, hindering AI progress and affecting innovation, productivity, national security, and equity markets. This paper explores these challenges and their…

This paper shows through a simple macroeconomic model that productivity shocks affecting the real economy can generate fluctuations in corporate default rates that are in line with empirical evidence. While the generated default rates are not enough to produce the observed fluctuations of borrowing costs and credit provision…

Are previous trends reversing or will rates revert to low values as current shocks subside? In a recent paper, we study the long-run drivers of the global trend interest rate – ‘Global R*’ – in the 70 years up to the pandemic. Global R* fell by more than three percentage points from its peak in the mid-1970s, driven by…

While artificial intelligence (AI) may not yet be improving productivity (according to the figures), investors should be active in identifying future winners – and move fast.

Natural Language Processing (NLP), a branch of Artificial Intelligence (AI) has seen some of the most notable advances in recent years. In this blog, we explore the productivity opportunities presented by NLP in research and portfolio management and look at how organisations can leverage this technology.