AI and the future of work: The implications for investors

Artificial intelligence could transform productivity, innovation and economic growth. But the key question for investors is whether companies can turn AI investment into long-term value without weakening the workforce, knowledge and resilience foundations on which their success depends.

Much of the investment debate around AI has focused on what AI systems can do, on investment in the infrastructure needed to run them, and on the companies supplying computing power. A new report from the Cambridge Institute for Sustainability Leadership (CISL), an impact-led institute within the University of Cambridge, helps to build resilient, competitive and sustainable economies through leadership, innovation, finance, policy and collaboration. argues that investors should widen that lens.

AI and the future of work: An investor briefing, published by CISL’s Investment Leaders Group, of which Rathbones is a member, examines how AI is changing the nature of work, organisations, labour markets and the wider economy. Rathbones colleagues contributed to the scoping and review of the briefing, providing perspectives on this rapidly evolving area.

Six areas investors can consider:

CISL identifies six useful areas for investors to consider when assessing company preparedness for AI: 

1.Strategic alignment
2.Workforce involvement
3.Oversight and accountability 
4.Workforce and transition capability
5.Execution and realised value
6.Management of external dependencies

AI has substantial potential to support innovation, productivity and growth. But the long-term winners may not be the businesses adopting it most loudly or quickly. They are more likely to be those who combine technology with disciplined investment, capable people, clear accountability, and organisational resilience. 

These are themes which run through our ongoing research and engagement activity relating to the tech sector, spanning both the social and environmental effects of building and operating data centres and the responsible investment implications of AI adoption and use.

Further reading: Artificial ethics

In an exclusive article, James Leaton, Sustainability Research Manager, Rathbones, explores some of the ethical and governance questions emerging alongside the rapid development of AI, from data privacy and cybersecurity to AI agents, systemic risk and model governance.

To find out more about these issues and what they could mean for investors, read James’s full article, Artificial ethics.