Goldman Sachs survey: AI and geopolitics shape global alternative investment trends

A survey conducted by Goldman Sachs Alternative Investments involving 225 global limited partners (LPs) reveals that 37% of respondents plan to increase their investment allocations this year, while 47% intend to maintain current levels.

Geopolitical tension remains the primary concern, cited by 82% of respondents as a top-five risk and 36% as their single greatest risk. Other significant concerns include inflation and a potential U.S. economic slowdown. Artificial intelligence has emerged as a dual-natured factor; 28% of LPs identified job displacement due to technological advancement as a top-five risk, yet 34% identified AI as the most powerful driver that will reshape the alternative investment industry over the next five years.

While investment intent remains strong, a lack of distributions from general partners (GPs) was identified by 35% of respondents as a major hurdle to deploying capital. Despite slower traditional exits due to high interest rates and geopolitical instability, experts note that the competition to build AI infrastructure represents one of the most significant investment opportunities of the 2020s.