MSCI launches AI supply chain sub-index, supporting precise allocation and risk hedging.

According to Bloomberg, MSCI has launched a series of new indices to help investors more precisely allocate or hedge risk exposures across different segments of the AI supply chain. The indices cover physical infrastructure, digital infrastructure, and the application layer that brings AI to real-world use, enabling investors to target specific segments instead of placing a one-way bet on the entire AI sector. Jana Haines, MSCI’s Head of Index Business, stated that investors are seeking more specific risk exposures across dimensions including industry, company size, and country, and aim to segment these exposures based on their portfolio requirements. However, these indices do not address how retail investors can hedge their growing AI exposure via retirement accounts, as index hedging and speculative strategies are generally not suitable for ordinary investors. Bain & Company estimates that by 2031, the industry will need to generate $6 trillion in annual revenue to support the AI infrastructure currently under construction, while existing applications are projected to only produce $1.2 trillion by that time. New search engines, autonomous vehicles, and yet-to-emerge applications may fill part of the gap, but a revenue shortfall of trillions of dollars is still expected.