To start, let’s reflect upon this past year. In your Future Trends Volume 11 report, you identified several major trends that will have an impact on the markets, such as: AI, Cybersecurity, Warehouses, Renewables, Quantum Computing, and more. How have those trends played out over the course of the year?
Our approach has always been long-term and multi-thematic, and we have consistently stated that as themes intersect and overlap, they should become mutually reinforcing. Clearly, AI has continued to dominate much of the investment narrative over 2025, but it has been pleasing to see investors incorporating a broader range of related themes. To take two from your list, cyber needs to remain top of mind. AI gives both attackers and defenders a new set of tools, but the asymmetry remains – the bad actor has to be right only once, while defenders need to secure their perimeter constantly. At the core of our data thesis is the idea that data have no value unless secured. Related, given how AI is spurring increasing data analysis and, hence, data center investment, then these data centers will need to be powered. Renewables will form an important part of the equation, especially since the cost and time required to build solar farms makes them substantially more efficient relative to other energy sources.
Were there any other trends that emerged in 2025 and surprised you?
To build on the prior question, we have been pleased to see that the Trump administration recognizes the importance of all energy sources – solar included – to help power the American economy. The One Big Beautiful Bill Act included provisions for solar that were more favorable than we had anticipated. On an unrelated note, the rate of change in quantum progress has been impressive. Consensus seems to be building that commercial quantum solutions could be available before decade-end.
In your Future Trends Volume 12 report, which looks at key themes for 2026 and beyond, you identified several major trends, such as: the Space Race, Cybersecurity, Warehouses, Geothermal Energy, Humanoid Robots, and more. Can you describe how you selected these major themes and briefly outline their potential impact in the years to come?
Our process remains unchanged: Seek to identify long-term themes that we believe will grow in importance broadly regardless of GDP growth and where government intervention – if present – will act as an industry tailwind as opposed to headwind. Cyber and robotics both feed into the AI theme, while geothermal will be another crucial energy input, especially when it comes to baseload power provision. The commercialization of space is exciting – a new frontier for both defense and data.
You noted that 2025 has been the year of the AI agent, but “embodied” or physical AI comes next. What developments are you watching for when it comes to humanoid robots?
We need more robots given a shrinking workforce and a growing need to care for the elderly. Today’s humanoids are the most expensive and least efficient than they will ever be. As costs come down, the industry scales and people become more familiar with the potential of humanoids, the number of use cases should increase. Watch for more deployments in 2026.
Do you have any unique predictions on the outlook of the markets?
Two observations: First, diversify. AI will change the world, but investors need to be mindful of implied expectations and related valuations. There are multiple other uncorrelated ways of playing the future, through for example, healthcare or real assets such as warehouses. Next, and related, do not forget that while most tend to over-estimate the near-term potential of many future trends, they still may under-estimate how important they are over the longer-term.