Institution: AI is increasingly seen as a key driver of investment returns.

Hamilton Lane stated in its 2026 market outlook that artificial intelligence is becoming the most important driver of investment returns. The private equity market company believes that concerns about tariffs, interest rates, and the US dollar may be overstated relative to the structural impact of AI on the market. The company stated that so far, the performance of AI investments does not resemble a typical bubble, and most of the spending comes from companies with large balance sheets and ample cash flow, although it is still in the early stages. The company added that the public markets seem to heavily focus on large language models, while the private markets cover a broader AI ecosystem. The report suggests that AI-related companies staying non-public over a longer period of time may bring returns for private equity investors.