Agentic AI could disrupt the internet the way AI coding disrupted software: UBS' Hoffmann-Burchardi

Summary

UBS CIO Ulrike Hoffmann-Burchardi discusses how geopolitics have short-term market effects but lasting structural impacts, favoring energy infrastructure and power. She emphasizes AI as a key dividing line for geopolitics and markets, with semiconductors benefiting from AI leadership. She also highlights the disruptive potential of AI on incumbents and the clear ROI in knowledge work, while noting UBS's focus on AI, electrification, power, and longevity.

• Geopolitical conflicts have short legs for markets but long structural shadows on the economy.
• Energy infrastructure and power are favored as a rotation from geopolitics.
• AI is the key dividing line for both geopolitics and economic leadership.
• Semiconductors are seen as a core beneficiary of AI investment themes.
• AI coding is already disruptive to software; agentic AI may similarly disrupt the internet.
• ROI on AI in knowledge work is clear, but operationalization remains a challenge.
• UBS has formed a dedicated global AI team to capture investment opportunities across themes.
• Traditional factor buckets (country, sector, style, size) are underappreciated for capturing returns.