Concerns around AI disruption have weighed heavily on parts of the UK smaller companies market - particularly businesses involved in data, comparison and research.
But are these fears justified?
To better understand the real impact of AI, Artemis spoke directly with the CEOs of three holdings across Artemis UK Smaller Companies Fund and Artemis UK Future Leaders trust: GB Group, MONY and YouGov.
The conversations revealed a consistent message: while AI presents risks, it may also create significant opportunities for businesses with proprietary data, trusted brands and strong market positions.
Why Artemis thinks the market may be getting it wrong
Proprietary data matters more in an AI world
As AI tools increasingly rely on publicly available information, unique and permissioned data sets become more valuable. Each business highlighted data as a key competitive advantage.
AI could drive growth and efficiency
Management teams discussed how AI is already helping improve efficiency, enhance products and create new commercial opportunities — rather than simply disrupting existing models.
Valuations remain depressed
Despite resilient business performance, all three companies are trading at valuations well below historic averages, with management teams actively buying back shares.
For advisers looking beyond short-term sentiment, Artemis believe these discussions provide valuable insight into how quality smaller companies are adapting to - and potentially benefiting from - the rapid evolution of AI.
