Asian investors now demand AI revenue proof, not just tech exposure, BofA finds

Asia's institutional investors have shifted their artificial intelligence investment criteria, now demanding demonstrable revenue and earnings impact over simple technology exposure as the sector enters a more mature phase, according to Chris Oberoi, head of Asia-Pacific research at Bank of America Global Research.

The transition reflects growing scrutiny of AI's commercial viability across the region's financial community. Bank of America's latest survey captures this fundamental change in investor priorities, with participants requiring proof of monetisation before committing capital.

Productivity and Returns Now Central

"The issue increasingly is: does it add to productivity, and is it being monetised," Oberoi said, adding that "the answer is, 'absolutely yes'". His assessment suggests that while investors have raised the bar for AI investments, companies are beginning to meet those stricter criteria.

The findings underscore how quickly artificial intelligence has moved from a speculative opportunity to a sector where traditional financial metrics, revenue generation and bottom-line contribution, now determine investment decisions. This evolution marks a critical inflection point for technology companies operating across Asia-Pacific markets that have positioned themselves around AI capabilities.

Separately, President Xi Jinping and US President Donald Trump are preparing to meet in Washington, with trade and technology expected to feature in talks between the world's two largest economies.

Source: South China Morning Post