Institutional investors around the world are reshaping their investment strategies as three major megatrends—artificial intelligence (AI), the energy transition and deglobalization—continue to redefine the global economic landscape. According to Nuveen’s latest Global Institutional Investor Survey, these themes are having a profound impact on portfolio construction and long-term capital allocation.
The report shows that AI has become the single most influential investment theme, with 63% of institutional investors identifying it as the megatrend most likely to shape their investment decisions over the next five years. The energy transition ranks second at 40%, followed by deglobalization at 36%.
“Institutional investors are facing a defining moment shaped by three transformative megatrends: the AI revolution, the energy transition and the forces of deglobalization. These are not merely abstract concepts—they are driving real investment decisions. Institutions are investing heavily in AI infrastructure and energy production, adjusting regional exposures in response to trade disruptions and significantly increasing allocations to private markets. The common thread is that investors are taking decisive action to position portfolios for a new investment landscape,” said Harriet Steel, Global Head of Institutional Distribution at Nuveen.
Nearly every institution is investing in AI
The survey highlights an unprecedented level of institutional commitment to AI, with 96% of institutions actively investing in AI-related opportunities. In addition, 75% believe AI will generate a significant increase in economic productivity over the next decade.
Investors are allocating capital to cloud infrastructure, computing capacity and semiconductors, AI model development and software, as well as energy generation to support the technology’s rapid expansion. Among investors allocating capital to AI, 39% view energy production and infrastructure as the most attractive investment opportunity.
“Nearly every conversation we have with institutional investors includes a discussion about the many ways to position portfolios around AI. Over the past 12 months, we have seen not only broader recognition of AI’s transformative potential, but also a much more sophisticated approach to investing in it. Interest in cloud infrastructure and semiconductors remains strong, but investors are increasingly seeking more direct exposure to the energy generation and transmission assets needed to power this revolution,” Steel added.
The energy transition: from risk to opportunity
Institutional investors are also changing the way they approach energy and climate, shifting from a risk-management perspective toward an opportunity-driven investment strategy.
According to Steel, investors are increasingly seeking exposure to new forms of energy generation, particularly as energy demand continues to rise across multiple sectors globally.
“At Nuveen, this translates into tangible investment opportunities across both public and private markets—from utility companies positioned to benefit from faster earnings growth to private financial markets, while 32% anticipate an uneven or unpredictable easing cycle that could increase
