Technological Disruption and Long-Term Investors: Managing Risk and Opportunities

34 Pages Posted: 11 Mar 2024

See all articles by Alistair Barker

Alistair Barker

AustralianSuper; Stanford University

Ashby Monk

Stanford University

Dane Rook

Stanford University

Date Written: February 28, 2024

Abstract

The current wave of uncertainty - and indeed, fear - over the possible consequences of artificial intelligence for the global economy and human society is, paradoxically, normal. Technological disruption (TD) is a perpetual feature of modern human life, occurring at various scales and presenting both risks and opportunities to investors. This paper investigates LTI approaches to TD management and proposes improvements. Through case studies and interviews with senior decision-makers from diverse LTIs worldwide, it is found that while some long-term investors (LTIs) recognize TD as a source of risk and opportunity, few have systematic approaches for managing it effectively. However, we argue that systematic TD management is feasible, and we present a toolkit for assessing and responding to TD risks and opportunities at both asset and portfolio levels.

Keywords: Alternative data, technological disruption, institutional investment, innovation

JEL Classification: G23

Suggested Citation

Barker, Alistair and Monk, Ashby and Rook, Dane, Technological Disruption and Long-Term Investors: Managing Risk and Opportunities (February 28, 2024). Available at SSRN: https://ssrn.com/abstract=4741908 or http://dx.doi.org/10.2139/ssrn.4741908

Alistair Barker (Contact Author)

AustralianSuper ( email )

Level 30
150 Lonsdale Street
Melbourne, Victoria 3000
Australia

Stanford University ( email )

Ashby Monk

Stanford University ( email )

United States

Dane Rook

Stanford University ( email )

Stanford, CA 94305
United States

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