This monologue podcast, hosted by Ed Stanley, Morgan Stanley's Global Head of Thematic Research, focuses on the rapidly evolving field of artificial intelligence (AI) and its impact on the stock market. Stanley introduces the concept of "agentic AI," where AI programs transition from reactive to proactive task fulfillment, and explains how this rapid advancement is impacting stock performance. He highlights a recent survey of 3,700 global stocks, revealing that 585 stocks saw changes in AI exposure or materiality to their investment case in just six months, impacting $14 trillion in market cap. Stanley concludes by suggesting that companies leveraging AI agents will outperform, and identifies three key areas for potential outperformance: AI enabler stocks (particularly in the software layer), adopters with pricing power, and financial stocks. The podcast emphasizes tracking AI's rate of change as a crucial factor for investment decisions in 2025.
