This year, the CIO Sentiment Survey has introduced new sets of questions related to the AI theme, exploring how asset owners are both investing in it and how using it portfolio management. These data offer a granular level of insights in where allocators spot opportunities and risks of the technology. 

In AI investments, CIOs prefer to gain exposure to the theme through the “picks and shovels” assets and companies, over software or VC. The most preferred type of AI exposure within the portfolio is power, grid and energy infrastructure, followed by data centres, and semiconductors or chip supply chain. 

Underweighting or having no exposure to AI is not a desirable option for many CIOs. 

In organisational AI usage, the area where CIOs want to dedicate more budget to is enterprise-wide AI, data management and back-office automation; risk management is relatively lower on the priority list but still, 32 per cent of respondents would like to increase spend in the area. 

In terms of practical steps to promote adoption, more than two thirds of respondent are building out use cases for AI, followed by enhancing data quality or governance, and training all staff. 

The investment function in asset owner organisation where AI’s usage is most mature (fully operational or being experimented) are investment research, manager due diligence and back office or administration. The areas with the most AI application potential (being explored or no current usage) are behavioural biases identification, training execution and portfolio management. 

“We continue to try and enhance outcomes… whether that be an addition of AI strategies in terms of, not specifically trading money, but helping us get insights whether by research or coding different applications to allow us to analyse the data,” QIC’s Allison Hill says. 

“We also continue to really try to enhance our communication as well. These systems are going to give us a range of different information, which will hopefully help us communicate even more clearly with clients.”