On March 27, Schroders Global Investment published an article stating that robot technology, automation, and artificial intelligence (AI) are key driving factors in the tech industry, poised to bring about revolutionary changes and investment opportunities. The institution points out that as the baby boomer generation gradually enters retirement, the labor force in several major economies around the world is expected to decrease. Companies need to consider solutions to address the challenges brought about by a shortage of labor. One solution is to more widely utilize robot technology, automation, and artificial intelligence (AI). This trend has already attracted interest from investors, but also carries significant risks of overhyping. Schroders Global points out that automation is a long-term trend, with its applications rapidly expanding from industrial processes to the entire service sector. The use of generative artificial intelligence based on language models has also garnered significant attention. The launch of the generative artificial intelligence model ChatGPT in November 2022, which can provide believable answers in almost any language, is highly sought after by companies that have already effectively applied automation, especially in the tech industry. AI has the potential to enhance and even replace some human work, offering transformative changes and creating opportunities for investors. "Pick and Shovel" companies driving innovation in technology development Companies that drive the development of new technologies, providing goods, services, or technologies needed in a particular industry, are seemingly poised to benefit. Whether it is a microchip manufacturer or a cloud computing facility operator processing and storing vast amounts of data, they appear to stand to gain from this trend. The impact of artificial intelligence may extend far beyond the tech industry A study by Goldman Sachs Investment Research found that about two-thirds of current job positions are to some extent facing automation. The study also found that 25% of work tasks (not jobs) could be replaced by artificial intelligence. Different research institutions have widely differing estimates of the potential benefits of artificial intelligence. McKinsey's report projects that generative artificial intelligence could add $2.6 trillion to $4.4 trillion in annual benefits to the global economy. PwC expects that by 2030, generative artificial intelligence will contribute $15.7 trillion to the global Gross Domestic Product (GDP), equivalent to driving 14% of global economic growth. Regardless of the scale and speed of development, the areas affected by artificial intelligence may not be limited to the tech industry, but could extend to various economic sectors. This reflects that some of the most profitable and cash-generating companies in the world currently come from the tech industry. These tech companies are expected to fully benefit from the automation trend. Diversified asset investors can build attractive stock returns and capital appreciation portfolios by investing in stocks of these companies. Sources of global stock returns and capital appreciation However, these tech industries and companies identified by the institution as globally high-growth are just one type of stock category benefiting from the theme of global economic growth. Additionally, Schroders Global believes that the energy and materials industries will benefit from the theme of commodity revival. Meanwhile, global diversified infrastructure and real estate companies, as well as certain Japanese stocks, will be able to provide further diversified investment opportunities.