CONTRIBUTORS
Matt Cioppa, CFA
Portfolio Manager, Research Analyst
Franklin Equity
Preview
The first phase of artificial intelligence (AI) was defined by technological breakthroughs. We think the next phase will be defined by infrastructure, commercialization and where AI creates lasting economic value. These are the five shifts we're watching most closely.
1 | AI Is Breaking the Adoption Curve
Artificial intelligence is commercializing faster than any previous technology platform, accelerating investment, adoption and value creation simultaneously.
2 | The Next Constraint Isn't Intelligence, It's Infrastructure
As AI scales, competitive advantage increasingly depends on the infrastructure that enables it—compute, connectivity, power and, ultimately, space.
3 | Space Becomes Part of the Stack
Commercial space is evolving from an aerospace industry into critical technology infrastructure that could help extend AI's reach beyond terrestrial limits.
4 | AI Moves into the Physical World
The next wave of AI is leaving the digital world, driving automation through robotics, autonomous systems and intelligent machines.
5 | The Next AI Race Is Execution
The greatest long-term opportunities are shifting from building AI to applying it, as businesses use the technology to transform entire industries.
WHAT ARE THE RISKS?
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Equity securities are subject to price fluctuation and possible loss of principal.
Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks.
Investment strategies which incorporate the identification of thematic investment opportunities, and their performance, may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. Focusing investments in the health care, information technology (IT) and/or technology-related industries carries much greater risks of adverse developments and price movements in such industries than a strategy that invests in a wider variety of industries.
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WF: 10480408