AI and climate change shaking up investors' assumptions Global Investment Megatrends

AI could strip emerging markets of their competitive edge, keep inflation low despite QE, cause huge labour market disruption and drive populism according to a new report. The report – Future proofing your asset allocation in an age of megatrends published by BNY Mellon – shows a huge range of complex challenges facing economies, markets and thus investors from two megatrends – AI and climate change. To compile the report, Create Research conducted detailed interviews with 45 chief investment officers, investment strategists and portfolio managers among asset owners, asset managers and pension consultants in 16 countries. AI is seen as a risk and opportunity by 52%, a risk alone by 33% and a pure opportunity by 7%. The report says that investment-specific challenges related to climate change centre on areas that are unknowable, requiring judgemental calls about the future.