18 June 2025
Dear Fintax Investor
In 2025, intensified competition and cautious investor sentiment have weighed on the Artificial Intelligence (AI) trade, with share prices of major AI companies retreating from their earlier peaks. Despite this, AI adoption among U.S. firms is accelerating, with 9.2% now utilising AI for goods and services production—a significant rise from 3.8% in September 2023. Goldman Sachs projects continued growth as technological advancements and declining implementation costs drive broader adoption. Beyond big tech, compelling investment opportunities are emerging in AI infrastructure and companies seamlessly integrating AI into their business models to enhance efficiency.
The rapid advancement of AI capabilities further underscores its transformative potential. For instance, OpenAI’s o3 model has surpassed genius-level performance on the Mensa Norway IQ Test, as shown in the below infographic comparing 24 leading AI models. Morningstar Investment Management is capitalising on this trend by investing in firms poised to leverage AI for productivity gains, such as Visa, Walmart, Samsung, Boeing, and Toyota Motor Corp, amongst others.
