Climate change and AI set to transform investing

After averting a 1929-style global depression in the wake of the Lehman collapse in 2008, central banks in key economies have faced the Herculean task of unwinding their crisis-era emergency measures, involving zero-bound interest rates and large-scale asset purchases. As the new decade begins it is becoming clear that two trends will reshape the future of investing. One is the rise of artificial intelligence (AI) as a new technology capable of disrupting every industry in the mature economies. The other is growing concern about climate change, which is set to transform the ecosystem of today's financial markets. This much is clear from a recent global survey of pension plans and asset managers by BNY Mellon Investment Management and CREATE-Research, titled Future2024: Future-proofing your asset allocation in the age of megatrends.