In the news: AI investment is accelerating

Catherine Alexander
Partner & Mortgage and Protection Adviser

A new survey by Broadridge reveals a significant uptick in AI-related investments across the financial sector. One-third of respondents anticipate seeing returns within just six months, highlighting growing confidence in AI's ability to enhance decision-making, automate operations, and improve client services. This trend is reshaping investment strategies, with firms increasingly allocating capital toward AI-driven tools and platforms.

While 2024 marked a record year with global AI deal value rising 52% to $131.5 billion, the focus in 2025 has moved toward companies that demonstrate clear paths to profitability and recurring revenue. Investors are prioritizing AI-native firms that offer customer-facing solutions and measurable cost efficiencies. Private equity firms are especially active in backing AI applications that streamline operations and reduce overhead. Additionally, the market is experiencing increased consolidation, with more exits and mergers among AI startups as the sector matures.

As the AI sector matures, investment strategies are evolving. The emphasis is no longer solely on foundational technologies like large language models (LLMs) or cloud infrastructure. Instead, capital is flowing into companies that can monetize AI through enhanced products and services. This includes fintech platforms using AI for personalized financial advice, fraud detection, and automated trading. The shift reflects a broader trend toward aligning AI capabilities with tangible business outcomes and customer value.

If you are interested in understanding the role that AI plays, or can play, as part of your portfolio, please speak to your adviser, or call our team and we’ll be happy to help.

This article is for general information and does not constitute personal financial advice. If you’re unsure what’s best for you, seek independent financial advice.