European investors have said artificial intelligence (AI) is the most compelling long-term thematic opportunity, according to a survey conducted by CoreData Research.
The survey, which was commissioned by WisdomTree and interviewed 440 European investors with approximately €240bn AUM, found 71.4% of respondents highlighted AI as the best thematic opportunity while 59.8% said biotech and 46.6% pointed to cyber security.
There are four AI ETFs available on the European market with the largest being the $187m WisdomTree Artificial Intelligence UCITS ETF (WTAI).
The $168m Amundi STOXX Global Artificial Intelligence UCITS ETF (GOAI) tracks an index from Stoxx while the $158m L&G Artificial Intelligence UCITS ETF (AIAI) offers exposure to a ROBO Global index and the final strategy offers exposure to big data as well as AI, the $104m Xtrackers Artificial Intelligence & Big Data UCITS ETF (XAIX).
AI is in its early stages of adoption and application with investors highlighting the technology to transform industries, services, labour and consumption.
Cloud computing and battery solutions was also highlighted by 32.5% of investors while digital assets scored 6.4%.
Overall, 61.1% of respondents plan to increase their allocation to thematic equities while 25.7% said stay the same and 7.3% said they will decrease their exposure.
The economic impact of artificial intelligence
Chris Gannatti, head of research, Europe, at WisdomTree, commented: “As investors look to add high growth specific allocations to portfolios, we expect the popularity of thematic equities that provide differentiated exposures to continue growing.
“Product development and innovation are key to standing out in such a competitive corner of the market.”