Fidelity International maintains that Europe is well-positioned to be one of the big winners in the next phase of the artificial intelligence (AI) revolution. As proof of this, the firm estimates that nearly 20% of the companies that make up the MSCI Europe index already derive income directly from AI-related activities.
By sector, the presence of AI is particularly pronounced in information technology, where it reaches 70%, followed by industry, with 35%, and communication services, with 15%.
However, the asset manager warns that a good portion of the companies poised to benefit from this advance have not yet seen the potential associated with AI reflected in their stock prices, a gap that, as it emphasizes, "is unlikely to persist indefinitely."
"Historically, markets tend to reward infrastructure providers first at the start of a technological cycle, because capital expenditure becomes immediately visible in revenues and profits," explains Fidelity International's European equity team fund manager, Marcel Stötzel, in a commentary.
The expert recalls that many AI solutions "are still in their infancy" and have barely begun to translate into income statements, as they have been in operation for less than six months.
Nevertheless, Stötzel points out that concrete examples are already emerging of how AI can cause profound transformations in various activities, such as banking, insurance, or agriculture. "Across all professional services, AI has the potential to materially increase the amount of work that can be completed with existing staff," he added.
Fidelity points out that the idea that Europe is barely exposed to AI because it does not have as concentrated a group of large technology companies as the United States or certain areas of Asia remains widespread.
However, European markets are primarily listed in sectors that, according to the asset manager's forecasts, will benefit from the adoption of AI by companies, such as financial services, energy and power grids, the pharmaceutical industry, industrial automation, and engineering.
"In many ways, the composition of the European market is naturally aligned with a more enterprise-driven AI cycle," the manager noted.