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Investing.com -- Artificial intelligence could generate annual net benefits of roughly $920 billion for S&P 500 companies, according to Morgan Stanley (NYSE:MS).
The bank said in a note Monday that its analysis points to “$13-16 trillion in long-term market value creation potential for the S&P 500” driven by AI adoption.
The report highlights that “90% of occupations will to some degree be impacted by AI automation and augmentation,” with the potential benefits coming from both cost reductions and productivity gains.
Morgan Stanley noted that agentic AI, essentially software-based applications, will likely have “a broader impact on jobs relative to embodied AI,” with greater scope for augmentation rather than outright replacement.
Sector exposure is said to vary widely. The bank found that Consumer Staples Distribution/Retail, Real Estate Management & Development, and Transportation could each see savings above 100% of estimated 2026 pretax earnings.
Health Care Equipment & Services was also flagged as a major beneficiary. By contrast, Technology Hardware & Equipment and Semiconductors show relatively muted effects.
Morgan Stanley emphasised that the value creation potential, equal to 24-29% of current S&P 500 market capitalisation, is “fundamentally bullish for AI enablers and adopters.” It added that the return on the roughly $3 trillion in expected global AI capex through 2028 in areas such as data centres and chips “is attractive.”
While the $920 billion figure represents a full-adoption scenario that may take years to achieve, the bank argued that the long-term opportunity is likely far larger.
“AI adoption market value creation potential, beyond the confines of the S&P 500, is likely to be multiples of the $13-16 trillion,” Morgan Stanley said.