PGIM Investments: The investment implications of technological disruption

Advances in technologies such as cloud computing, artificial intelligence and machine learning are radically reshaping winners and losers across the service sector in both developed and emerging markets – and at an even faster pace after the COVID-19 pandemic. This technology transformation will allow new entrants to disrupt key components of the services value chain. At the same time – and to a greater extent than in manufacturing and retail – a select group of technology-forward incumbents will benefit from some unique features of the services sector (such as client acquisition costs and regulatory complexity) to survive, and even thrive, during the process of creative destruction ahead of us.

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