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After examining how artificial intelligence (AI) is transforming the world of work and why productivity gains are slow to show up in the data, our experts at iA Global Asset Management—Sébastien Mc Mahon, Chief Economist, and Maxime Houde, Senior Director and Portfolio Manager, Thematic Investing—turn their attention to capital flows in their latest article.

Some of their main observations

  • Foundation models are increasingly becoming commoditized.
  • The next major source of value should emerge at the level of orchestration.
  • Distribution may be more important than innovation and model quality.
  • Sustainable competitive advantages will increasingly stem from in-house AI capabilities that companies build for themselves.
  • The exceptionally high margins currently observed at the lower end of the value chain should be viewed as cyclical rather than permanent.

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