A new global study by Robocap, a fund manager and investor specializing in robotics, automation, and artificial intelligence (AI) equities since 2016, reveals that 37% of pension funds, insurance asset managers, family offices, and wealth managers—with a combined total of $1.183 trillion in assets under management—are very concerned about false claims made by some companies regarding their use of artificial intelligence and its purported positive impact on operations. An additional 63% expressed moderate concern about this issue.
Based on their experience, Robocap identifies “different types of AI washing.” This may include companies that claim to use AI when they are in fact relying on less sophisticated algorithms. It may also involve overstating the effectiveness of their AI compared to existing techniques or falsely asserting that their AI solutions are fully operational.
Looking ahead, 26% of the professional investors surveyed believe AI washing will worsen slightly over the next three years, while 3% expect it to worsen considerably. However, nearly two-thirds believe the issue will diminish, and 7% think it will remain unchanged.
Robocap is a thematic equity fund focused on pure-play publicly listed companies operating in the global robotics, automation, and artificial intelligence space. This fast-growing theme includes AI-powered cybersecurity, AI software, general automation, industrial robotics, healthcare robotics, drones, autonomous vehicles, key components, semiconductor automation, space robotics, logistics automation, and a wide range of AI applications throughout the entire value chain.
Robocap’s pure-play approach means it invests only in companies where at least 40% of revenues are related to robotics, automation, and AI. Currently, 85% of the portfolio’s revenues are directly tied to this theme. The fund manager is supported by a team of experienced investors and an advisory board of leading technology experts and entrepreneurs who help guide investment decisions.
The Robocap UCITS Fund, launched in January 2016 and managed by a specialized team based in London, aims for a 12% annual return over an economic cycle. It has achieved a net annualized return (CAGR) of 11.84% and a net return of 181% since inception.
Following the release of the study, Jonathan Cohen, founder and Chief Investment Officer (CIO) of Robocap, stated:
“Much like greenwashing, AI washing is a real issue for investors seeking exposure to companies that truly benefit from the growth and operational efficiencies AI can offer. We believe there is a significant misunderstanding and misuse of the term ‘AI,’ as well as a wide gap between technological innovation and the actual revenue derived from it. When selecting investment opportunities, we look for companies with solid underlying exposure to the AI, robotics, and automation theme, a strong business model supported by excellent technology, a good management team, and attractive valuation.”
