Leaders at the Bell with Jonathan Berkow, Director at Quant Research, & Alliance Bernstein, Sep. 24, 2026

Jonathan Berko from AllianceBernstein discusses how large institutional investors are using artificial intelligence in portfolio management at the New York Stock Exchange on September 24. He explains that AI models have improved dramatically in recent six months, though token costs are rising and optimization is becoming crucial. The firm focuses on proprietary advantages through their investment process and the questions they ask rather than just model access, measuring that analysts using AI most have increased their coverage and improved alpha generation.

Berko addresses several challenges including managing AI-generated information overload and risk models that struggle with new correlations like HVAC companies becoming AI plays or nuclear energy co-moving with AI themes. He notes markets now react first to GPT-generated answers, requiring investors to think beyond initial responses. Looking beyond short-term AI trends, he emphasizes long-term demographic changes such as the global population over 60 doubling to 2 billion by 2050, which will create sustained shifts in healthcare, retirement services and travel sectors.