New global research from fund manager Robocap reveals that 37% of pension funds, insurance asset managers, family offices and wealth managers with combined assets under management of USD1.183 trillion are very concerned that companies are making false claims about the extent to which they use AI and the positive impact this is having on their operations. A further 63% are quite concerned about this issue.
There are several types of AI washing. It could include companies claiming to use AI when, in fact, they are using less-sophisticated algorithms. It could also involve overstating the efficacy of their AI over existing techniques or falsely claiming that their AI solutions are fully operational.
Over the next three years, more than a quarter (26%) of the professional investors surveyed believe that AI washing will worsen slightly, while 3% believe it will get much worse. However, almost two-thirds believe the problem of AI will become less severe, and 7% say it will not change.
“Just like greenwashing, AI washing is a genuine problem for investors who are looking for exposure to companies that genuinely profit from the growth and operational efficiencies AI can bring,” said Robocap CIO Jonathan Cohen. “We believe there is a strong misunderstanding and a misuse of the term AI, a great disparity between the technological innovation and what we actually see in terms of revenues derived from it.”
Robocap is a thematic equity fund focusing on pure-play robotics, automation and AI listed stocks globally. This fast-growing theme includes AI cyber security, AI software, general automation, industrial robotics, healthcare robotics, drones, autonomous vehicles, key components, semiconductor automation, space robotics, logistics automation, and the multiple applications of artificial intelligence across its value chain.
Robocap’s pure play style means it only invests in companies with at least 40% purity of revenues related to robotics, automation and AI, with 85% of the current portfolio’s revenues linked directly to the theme. The fund manager has a team of seasoned investors and an advisory board of leading technology experts and entrepreneurs to make investment decisions.
“When selecting investment opportunities, we look for companies with a good underlying exposure to the AI, robotics and automation theme, a strong business model backed by excellent technology, a good management team and at a compelling valuation,” Cohen adds.
