Navigating AI’s Transformative Impact: Baird Insights for Investors

As artificial intelligence (AI) transforms virtually every industry from influencing strategy and decision making to impacting day-to-day operations, it’s rapidly creating new opportunities for investors. Baird’s experts are staying connected to emerging AI trends, sharing insights about how to navigate the rapidly shifting landscape.

Recently, Baird Equity Research analysts discussed findings from their inaugural Corporate GenAI Survey at the firm’s Global Consumer, Services and Technology Conference. Baird’s survey of 100 companies across a variety of industries showed that GenAI adoption is growing with more than 87 percent of companies planning to increase their AI spend over the next 12 to 24 months.

Other key takeaways from recent Baird reports include:

• Engineering excellence defines great companies: “What we emphasize to our clients, over and over again, is just how important engineering excellence and sophistication is,” said Colin Sebastian, Baird Senior Research Analyst, discussing the core drivers of stock performance on the GeekWire Podcast. “I don’t think that changes with AI.”
• IT training remains critical: While there has been an increase in autonomous AI technology capabilities across the entire cybersecurity stack, humans remain the main target for the most dangerous cyberattacks. According to Baird’s Cybersecurity investment bankers who attended the RSAC 2025 Conference for cybersecurity professionals, continuous training of skilled IT teams and security analysts, augmenting and personalizing human risk management with AI capabilities will remain critical.
• AI needs a human touch: AI has great potential in complex, regulated sectors, and a human touch will be indispensable in successfully implementing AI in those areas, according to a panel of industry leaders at Baird’s 2025 Private Company Technology and Services Conference. Panelists discussed AI’s potentially transformative impact in healthcare, noting that AI will require human oversight for many future use cases.
• Legal industry navigates data security concerns: Legal and legal tech companies are accelerating their AI adoption, hoping to streamline their operations, according to Baird’s Global Technology and Services investment bankers who attended Legalweek, a leading legal industry conference. However, individual users and technology decision-makers must weigh the specific ethics of using AI and how it impacts privacy, data security and protection, and potential bias.