MSCI has rolled out a new set of indexes tied to different parts of the AI supply chain, giving investors a more precise way to allocate capital or hedge exposure across the sector, according to Bloomberg. The lineup spans physical infrastructure, digital infrastructure, and the application layer where AI is ultimately put to use, allowing investors to target specific segments instead of taking a single broad bet on the entire AI industry. Jana Haines, head of index at MSCI, said investors are looking for more granular exposure across dimensions such as industry, company size, and country, and want those exposures broken down to fit portfolio needs. The report also noted a key limitation: these indexes do not solve the problem of how ordinary investors, especially those adding AI exposure through retirement accounts, can hedge that risk, since index hedging and speculative strategies are generally not suitable for retail investors. Bain & Company estimates that by 2031, the industry will need to generate $6 trillion in annual revenue to support AI infrastructure now being built, while existing applications may produce only $1.2 trillion, leaving a multitrillion-dollar gap even if new search tools, self-driving cars, and other future applications help close part of it.
MSCI has introduced a series of new indexes designed to help investors allocate capital more precisely or hedge risk exposure across different parts of the AI supply chain, according to Bloomberg.
The indexes cover physical infrastructure, digital infrastructure, and the application layer where AI is put into real-world use. That gives investors a way to target a specific segment rather than making a single directional bet on the entire AI sector.
MSCI says investors want more granular exposure
Jana Haines, head of index at MSCI, said investors are seeking more specific exposure across several dimensions, including industry, company size, and country. She said they also want those exposures segmented based on portfolio needs.
Retail hedging remains unresolved
The new indexes do not address how ordinary investors can hedge growing AI exposure built through retirement accounts. The report added that index hedging and speculative strategies are generally not suitable for retail investors.
Bain sees a large revenue gap by 2031
Bain & Company estimates that by 2031, the industry will need to generate $6 trillion in annual revenue to support the AI infrastructure now being built. Existing applications, however, may produce only $1.2 trillion by then.
New search engines, self-driving cars, and applications that do not yet exist could close part of that gap, but the report said a shortfall of several trillion dollars is still expected.
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