Asset managers bullish on AI
Cathie Wood, the CEO and chief investment officer of ARK Invest, along with other asset managers and investors, expressed their optimism about artificial intelligence (AI) during the Alts NY Conference. Wood, known for her focus on disruptive technologies, emphasized AI as the “biggest catalyst for growth” in today’s markets.
Cathie Wood, the CEO and chief investment officer of ARK Invest, along with other asset managers and investors, expressed their optimism about artificial intelligence (AI) during the Alts NY Conference. Wood, known for her focus on disruptive technologies, emphasized AI as the “biggest catalyst for growth” in today’s markets.
The conference discussions revolved around investors’ interest in AI’s potential opportunities and its disruptive impact on the investment industry.
Various industry figures shared their perspectives on AI. Paula Volent, CIO of Rockefeller University, mentioned her considerations for adding AI exposure to her portfolio. Jenny Johnson, CEO of Franklin Templeton, expressed interest in integrating AI into the firm’s technology stack. Maurice Gordon, senior investment manager at Guardian Life Insurance, is leading a project to evaluate the optimal deployment of AI within their operations.
ARK Invest’s portfolios reflect the growing interest in AI. The firm’s public-private crossover venture fund holds significant positions in AI companies, with Anthropic, an AI startup behind Claud, a ChatGPT-like chatbot, as its largest holding. Replit, a browser-based coding platform utilizing AI for coding, is the second-largest holding. ARK’s ETFs, including ARK Innovation, ARK Autonomous Technology and Robotics, and ARK Next Generation, also hold notable AI-related companies such as UiPath, an AI-powered business automation company.
Wood believes that AI can assist companies overly reliant on revenue growth, enabling them to address margin structures by automating tasks and potentially substituting some expensive white-collar jobs. She predicts a potential reduction in knowledge workers’ cost by about one-third, emphasizing the elevation of individuals into higher-value and higher-income roles.
Moreover, Wood sees AI and technological innovation as factors that could contribute to reducing inflation. She expects innovation to be inherently deflationary, leading to a potential negative Consumer Price Index (CPI) in 2024.
Overall, industry insiders, including Cathie Wood, share a positive outlook on AI, recognizing its growth potential, ability to enhance productivity, and impact on various sectors of the economy.
