Investing in AI: the race from language model to autonomous intelligence
Artificial Intelligence (AI) has become indispensable in our daily lives, including in our investment portfolio. Tom Simonts, Senior Financial Economist at KBC Group, and Joris Franck, Portfolio Manager at KBC Asset Management, explain how AI is rapidly advancing from language model to autonomous intelligence, and what this means for investors.
Looks like ‘AI agent’ is going to be the new buzzword for 2025.
Tom Simonts, Senior Financial Economist at KBC Group, and Joris Franck, Portfolio Manager at KBC Asset Management
In 2024, Tom Simonts and Joris Franck predicted that the winners of the AI race would not necessarily be the leaders of the pack, but rather part of the greater pack – an accurate prediction, as it turned out. Chinese start-up DeepSeek took the world by surprise when it released cutting-edge AI models at – so it claims – a far lower cost than established US tech giants. “Investors need to look beyond big names like OpenAI, the company behind ChatGPT. Diversification remains key,” Simonts stresses.
Trends transcending geopolitics
The uncertainty in the financial markets is undeniable for investors. “US President Donald Trump’s policy is nothing but uncertainty. The only certain factor is the investor”, Simonts continues.
You can try to look past the current turmoil, though, at structural trends like artificial intelligence, for example. “Model developers like OpenAI, Meta, Google, xAI and DeepSeek all seek to create the most advanced AI models at the lowest possible cost. Big names like these also imply an ongoing geopolitical AI race. This AI rivalry also has its benefits”, says Franck. “Everyone wants to win the AI race and the finish is nowhere in sight. The AI market of the future is going to be enormous. With every company competing for the biggest piece of the pie, the investments will be gargantuan. Europe, France in particular, is also doing its utmost to keep up with the US and China.”
The US and China are fighting for technological dominance and are willing to pay astronomical sums to achieve this. The resulting turmoil in the markets is making investors anxious, while at the same time they stand to benefit from the surge in innovation.
Everyone wants to win the AI race and is willing to pay a sizeable sum to achieve this. The finish is nowhere in sight. The AI market of the future is going to be enormous.
Joris Franck, Portfolio Manager at KBC Asset Management
Self-critical AI agents
According to Simonts and Franck, we need to keep a particular close eye on AI agents. These systems are capable of making decisions and performing tasks autonomously without human intervention. AI agents use so-called ‘chain-of-thought reasoning’, letting these systems critically reflect on their own thought process. “For example, you can ask an AI agent to book a business trip for you, including arranging your flights, hotel and car rental. It independently scans the available options and picks the best ones for you. It could also select the best ten out of a hundred CVs. The fact that more and more people are turning to AI to create their CV and cover letter makes this a little bit funny – AI selecting AI”, Frank laughs.
AI agents: they sound like something from a utopian sci-fi film like The Terminator or The Matrix. However, they are very real. Autonomous AI agents are capable of thinking, making decisions and performing tasks without human intervention.
Tom Simonts, Senior Financial Economist at KBC Group
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The information contained in this publication is for information purposes only and should not be considered as investment advice.
