We believe artificial intelligence (AI) is the next general-purpose technology and a rare example of discontinuous technology change around which all industries will be reshaped. We have gained invaluable experience in AI having run a dedicated AI fund (more focused on beneficiaries in global equities) for the past seven years. An ‘AI lens’ framework for assessing the impact of AI is now central to our investment process and we believe understanding the impact of generative AI may become the most significant differentiating factor in Trust performance for the next decade.

Looking ahead to 2025, we expect strong demand for NVIDIA’s Blackwell processors, coupled with high-profile generative AI model upgrades and product releases, will drive further investor interest in AI-exposed stocks. Pro-business policies from a Trump/Republican/Musk government should ensure the US remains one of the stronger global economies and at the forefront of generative AI development, while regulation does not hinder AI progress.

As AI adoption accelerates, supply constraints ease and the benefits of adopting generative AI likely become more obvious during the year, we expect to see a broadening in the technology market as a wider range of companies provide both the enabling technologies and benefit from the application of AI. 

As is typical during the early stages of new technology cycles, there will likely be periods of volatility as dramatic technology platform shifts of this magnitude ultimately drive significant changes in leadership (new winners built on new architectures) suggesting a positive tailwind for active management later in 2025.

Our understanding of technology-enabled change and deep AI knowledge will be critical to navigating the considerable disruption ahead and unlocking the broader AI opportunity.