Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount they originally invested.
UNLOCKING AI’S POTENTIAL
The artificial intelligence investment opportunity extends well beyond the technology sector and is expected to evolve over many years. This powerful trend is still in its early stages and will likely impact multiple sectors and economies in diverse ways over the long term.
What sets AI apart from past technological shifts is its potential to mimic, or even enhance, human intelligence. BlackRock’s Investment Institute (“BII”) believes it could reshape the economy, accelerating scientific breakthroughs and creating entirely new industries.
THE LAYERS POWERING AI
The race for AI development is underway, with early adopters likely benefiting first, while broader opportunities across the AI ecosystem will emerge over time.
We assess this opportunity in BlackRock’s “AI stack” which refers to the layered infrastructure, tools and technologies required to build, deploy and scale AI applications.
AI in semiconductor manufacturing: The next S curve? | McKinsey
The state of AI in early 2024 | McKinsey, Worldwide Spending on Artificial Intelligence Forecast to Reach $632 Billion in 2028, According to a New IDC Spending Guide | Business Wire
The state of AI in early 2024 | McKinsey. * Fundamental equity team
Video 01:08
“We are at the dawn of an intelligence revolution, more profound than all past industrial revolutions.”
Tony Kim
BlackRock Head of Fundamental Equities Global Technology
The primary reasons that make AI a more enduring investment opportunity is when we compare to prior waves of technology via the PC, the smartphone, the internet, the cloud, those are all amazing productivity tools. AI however, represents something quite different. This is, akin to building intelligence. Manufacturing intelligence. And this is something that we've not seen before.
And in this regard, it has actually consolidated and captured the entire emphasis of the entire technology industry. So for the balance of this decade, I would suspect that AI will be the predominant driver of growth.
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01.
DAWN OF A NEW TECH ERA
Every decade brings a profound shift in technology. AI is the transformative platform shift of today, poised to redefine global society, creating a new wave of market opportunities for years to come.
02.
A HISTORIC BUILD-OUT
As firms transition to an AI-driven cloud and accelerated computing, we anticipate a surge in spending on AI infrastructure, creating new investment opportunities in the supply chain.
03.
TRANSFORMING INDUSTRIES WORLDWIDE
AI is reshaping personalised experiences, enterprise efficiency and real-world applications like robotics. With deeper market integration, AI holds vast transformative growth potential.
BLENDING INDEX SIMPLICITY WITH ACTIVE EXPERTISE
Investing in AI-related ETFs doesn’t have to be complicated. Our AI range can be used alone or combined to help capitalise on the areas of the AI ecosystem and approach that best suits you.
Source: Blackrock 31 December 2024.
For illustrative purposes only
UNLOCKING AI’S FUTURE, LAYER BY LAYER
The iShares AI Innovation Active UCITS ETF is an actively managed, concentrated “best ideas” portfolio providing a targeted exposure to the full value chain of companies at the forefront of AI innovation. Through a bottom-up, fundamental approach, the fund dynamically adjusts its exposures to help capture potential emerging trends and helps capitalise on new opportunities.
Discover the powerful combination of BlackRock’s fundamental active management capabilities delivered by the global leader in ETFs.
01.
CONCENTRATED “BEST IDEAS”
A high-conviction, concentrated strategy with a focus on delivering alpha driven by comprehensive fundamental research and detailed analysis.
02.
ACCESS ACROSS THE AI STACK
Provides a targeted exposure to opportunities in all layers of the new AI stack, identifying companies at the forefront of AI innovation.
03.
ACTIVE ADVANTAGE
The AI theme has a high rate of change and competition which creates a fertile backdrop for active stock pickers.
FROM INFRASTRUCTURE TO ADOPTION
Our AI index range provides targeted exposure across the AI stack, enabling investors to focus on where they believe the best opportunities lie as the AI theme evolves—from foundational infrastructure to real-world applications and specialised fields like biology and material sciences.
iShares AI Infrastructure UCITS ETF
Invests in companies that play a central role in the development and evolution of the building block components for AI, such as semiconductors, cloud computing and big data technologies.
iShares AI Adopters and Applications UCITS ETF
Invests in companies that are benefiting from AI advancements. AI is expected to revolutionise various domains like healthcare, mobility, finance, process automation and other operational areas.
OUR SUITE OF INDEX AND ACTIVE ARTIFICIAL INTELLIGENCE FUNDS
FREQUENTLY ASKED QUESTIONS ABOUT INVESTING IN AI
Investors may consider investing in AI as it is reshaping industries and economies around the world. AI's rapid growth demands significant investment in infrastructure like data centres, semiconductors and raw materials, offering an opportunity for investors to tap into a market that could be poised for significant growth.
AI technology has been driving a historic capital expenditure cycle with significant infrastructure investments needed for data centres, semiconductors and power. This build-out is anticipated to continue for years, offering an opportunity for investors to participate in the AI theme.1
In our view, active investment strategies will be key to identifying likely winners over time and active stock investors with deep technical knowledge may be best suited to navigate this space. Investors interested in the AI theme may also choose pure-play or complementary exposures targeting themes within the broader AI ecosystem.
Investing in AI focuses on a specific transformative technology with growth potential, while tech sector investments cover a broader range of companies and innovations. AI investment offers a targeted approach to a sector driving significant infrastructure and economic changes.
iShares offers AI-related ETFs that bring potential solutions to investors looking to harness the potential growth opportunities stemming from AI technology, spanning across active approaches to AI and global tech to exposure to the full AI value chain.
BlackRock uses AI to inform investment decisions, analyse large data sets and help understand complex problems and to enable investment professionals to develop innovative investment approaches.
Investing in AI carries risks such as data inaccuracy, intense competition, rapid product obsolescence and dependency on consumer base and end-user demand. Companies may also face sector-specific market and business risks, affecting overall performance.