From hype to proof: AI’s inflection point

The macro backdrop has been volatile but the AI trade has remained resilient. Xuesong Zhao, Lead Manager of the Polar Capital Artificial Intelligence Fund, explains why and what it means for investors. Highlighting rapid model improvements, falling costs and an inflection in enterprise adoption, Xuesong discusses how more autonomous AI systems are enabling real-world applications beyond the technology sector, particularly in asset-heavy industries, such as industrials and transportation. Looking ahead, he believes the opportunity will continue to broaden as AI-driven earnings growth becomes an increasingly important driver of returns.