Mapping AI's Rate of Change and ROI Evidence

This document is a research report that outlines the findings from Morgan Stanley's fifth global AI stock mapping exercise, which encompasses data from approximately 3,600 stocks. The report details how the market's focus has shifted from merely identifying AI exposure to evaluating the return on investment (ROI) associated with AI adoption. It presents the analysts' expectations that around 80% of the benefits from AI are anticipated to stem from cost efficiency rather than revenue growth. The report highlights that a growing percentage of North American AI adopters have reported quantifiable impacts from AI initiatives, indicating an upward trend in ROI disclosure as strategies mature. Furthermore, it details how certain sectors, particularly in Europe, are adjusting their workforce strategies in response to AI advancements. Additionally, the report discusses the mispricing of stocks deemed vulnerable to AI disruption and offers three methodologies for identifying stock opportunities based on AI adoption trends. Overall, the research emphasizes the necessity for investors to recognize the evolving dynamics of AI's impact on market performance.