ESG Megatrends: AI & Automation


ESG Megatrends: AI & Automation

With recent advances in the field of artificial intelligence (AI) and the increasing use of automation across many industries, there is potential to revolutionize the economy as we know it. Simultaneously, these technologies raise various important Environmental, Social and Governance (ESG) issues that need to be addressed. This paper explores the challenges and opportunities presented by AI and automation, discussing the potential impacts on the real economy and investors' portfolios.

Executive summary

  • AI and advanced workplace automation carry the potential to revolutionize the economy by enabling machines to perform tasks previously only possible for humans.
  • As AI technologies advance, they raise significant Environmental, Social, and Governance (ESG) considerations. These factors should be integrated into the investment decision-making process.
  • The effects of AI and workplace automation developments on the labor market will be strongly contingent on the willingness and ease of AI adoption across organizations.
  • Investors should adopt a long-term perspective. The full potential of AI may not be realized in the short term, but over the long term, they could significantly disrupt the economic landscape.
  • The impacts of AI on the real economy may prompt investors to incorporate these developments into their strategic asset allocation (SAA) process.

This article is part of the ESG Megatrends: Implications for Strategic Asset Allocation (SAA) series in which we discuss the consequences of key ESG developments across the global economy that we believe will affect investors’ portfolios.

Download ESG Megatrends: AI & Automation paper here >

Important disclosures

ESG Megatrends AI & Automation - Aegon Asset Management.pdf

(497KB) PDF


More about the authors

Igor Quint Investment Strategist

Igor Quint joined Aegon Asset Management in 2019 and works as an Investment Strategist in the Fiduciary Services and Investment Solutions team. 


Jelmer Kuiper Investment Strategist

Jelmer Kuiper joined Aegon Asset Management in 2023. In his role as Investment Strategist, he advises institutional clients on their strategic asset allocation and ALM related topics. 



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