Beyond the Algorithm: The Humanism of AI

In the second of a two-part series, George Crowdy, Senior Fund Manager at Royal London Asset Management, discusses how Artificial Intelligence can play a meaningful role in creating a more sustainable and inclusive society for years to come.

AI in Everyday Life

For investors, the narrative surrounding Artificial Intelligence (AI) has been dominated by a handful of Silicon Valley tech giants. But just like the early days of the internet – where the biggest long-term winners weren't just the companies selling network routers, but the everyday businesses built on top of them – the true societal and financial impacts of AI will be found in how it is deployed across the broader economy.

We are entering a multi-decade investment boom where AI is moving from a tech-sector story to an ‘everywhere story.’ For investors focused on sustainability, this shift is crucial. Far from being a cold, purely mechanical technology, AI is rapidly becoming a profoundly human tool – the ultimate mechanism for driving resource efficiency, solving labour crises, and widening access to essential services.

However, this isn't a tide that lifts all boats. In the AI era, there will be clear winners and losers. Spotting the businesses leveraging AI for sustainable, long-term growth requires looking past industry labels and focusing on how companies use the technology to protect their business models and drive financial returns.

The AI Playbook: Three Ways Companies Profit

Rather than viewing the market by traditional sector maps, we group companies by how they deploy AI to solve real-world problems across the three pillars of sustainable investing.

Identifying the Winners: What This Means for Investors

While discussions about AI often focus on job disruption or ethical concerns, the broader picture for long-term investors is one of opportunity and progress. Historically, technological advances have enhanced human capability rather than replacing it – freeing people from repetitive tasks and allowing greater focus on creativity, strategy, and complex problem-solving.

However, because this represents a structural shift across healthcare, industrials, financial services, and agriculture, careful analysis remains essential. Not all companies investing in AI will succeed.

At Royal London Asset Management, part of our approach to Sustainable investing has always been to identify the most exciting long-term investment themes, and then finding the lowest-risk, most predictable ways of benefiting from them. We believe that AI represents a transformative, positive force that is quietly reshaping the world around us. By taking a targeted, active approach, we aim to capture these multi-decade opportunities across our sustainable fund range, backing the companies that use AI to build a more efficient, resilient, and human-centric future.

For professional investors only.  This material is not suitable for a retail audience. Capital at risk. This is a financial promotion and is not investment advice. Past performance is not a guide to future performance. Reference to any security is for information purposes only and should not be considered a recommendation to buy or sell.

The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change. Forward looking statements are subject to certain risks and uncertainties. Actual outcomes may be materially different from those expressed or implied.