Those looking to harness the best long-term opportunities in the equity market are likely keeping a close eye on how the AI sector is doing.
After all, momentum in the AI space proved to be a key driver of the market in 2025. 2026 may very well prove to be no different in that regard. However, the question remains: How does one go about picking the companies that will lead the way in AI long-term?
The BNY Investments 2026 Outlook discusses this topic at length. In the outlook, Sebastian Vismara, Head of Economic Research at BNY Advisors, explained how to evaluate which stocks may be in a good position to turn AI adoption into resonating market momentum.
Vismara started by noting that much of the current market performance has fixated on AI enablers and builders. However, once the adoption expands into more widespread use, advisors may need to pivot their focus to the companies capturing the most value from AI.
Poignantly, Vismara assessed that evaluating improved productivity is not the only factor that advisors should be using to find the companies best positioned to benefit from the technology. As he noted, “higher productivity growth alone is rarely enough to deliver sustained increases in profitability."
AI: More Than Just a Productivity Boost
Widespread AI adoption is not only going to affect the way the market looks at productivity statistics. Vismara pointed out that competitive dynamics are likely going to shift as AI integrates itself into corporate life. Since AI can offer a lower-cost means for transforming information, the technology can threaten companies that rely on information-based competitive advantages. Meanwhile, businesses with robust physical assets or good regulatory security may be in a better position to have their competitive edge preserved.
On a positive note, Vismara noted that AI can actually help businesses tap into unmet demand. If projections play out correctly and AI increases productivity while lowering costs, aggregate real income could rise, leading to growing demand for a variety of previously-less-accessible goods, like quality healthcare.
“The biggest beneficiaries of AI adoption won’t simply be the fastest adopters,” Vismara added. “Winning firms will likely leverage two advantages: strong productivity gains even after widespread adoption and the ability to capture unmet demand where lower prices translate into higher volumes. Sectors that pair these two dynamics together can become important plays in the AI theme.”
Advantages of a Concentrated Take on Growth
The BNY Concentrated Growth ETF (BKCG ) is not an AI-focused ETF per se, but its investment approach can very well capitalize on the opportunities in the space. True to its name, BKCG is a concentrated, large-cap active growth ETF, typically investing in 25–35 companies.
BKCG’s portfolio team starts by examining a variety of sectors to find those that offer attractive growth potential across the next three to five years. The fund managers then employ fundamental analysis to zero in on companies that have dominant positions in their respective industries, along with good track records for profitability.
BKCG’s approach to large-cap investing helped the fund close out 2025 on a high note. As of December 31, 2025, the fund’s NAV had risen 14.58% year-to-date.
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