According to Societe Generale’s Cross Asset Research, investments in robotics and AI in the U.S. are performing exceptionally well and have the potential to drive productivity growth across the economy. The firm identifies 150 stocks, the majority of which are based in the U.S., that focus on application and system software and machinery in the robot technology sector. The SG Rise of the Robots index has shown a 36% performance year-to-date. The breakdown of the index reveals that application software has the largest share, followed by semiconductors, systems and software, machinery, and healthcare equipment.
The firm argues that AI tools can significantly enhance labor productivity without making the human workforce obsolete. They cite data from the McKinsey Global Institute, indicating that generative AI could boost U.S. labor productivity by 0.5 to 0.9 percentage points annually until 2030. When combined with other automation technologies, the potential for growth becomes even greater, potentially driving U.S. productivity growth to 3 to 4 percent annually. Globally, the AI market is currently valued at $136.55 billion, and North America is expected to experience a 14.5% increase in GDP by 2030, resulting in a combined economic impact of $10.7 trillion, constituting nearly 70% of the global total.
In 2023, discussions surrounding AI have mostly focused on megacap stocks such as Meta, Microsoft, Salesforce, and Nvidia, which are seen as potential players in various aspects of the technology. However, smaller stocks like UiPath Inc. and C3.ai, Inc. have also received attention.