UBS Global Wealth CIO Says Ditch Coders for Builders as AI Booms

February 26, 2026 - 01:32

As artificial intelligence reshapes the investment landscape, a leading strategist advises a pivot toward tangible, physical-world enterprises. According to Ulrike Hoffmann-Burchardi, Global Head of Equities and CIO for the Americas at UBS Wealth Management, the rapid ascent of AI presents a significant challenge to purely software-based business models.

Hoffmann-Burchardi suggests that the very nature of AI, which excels at coding and software development, could disrupt the valuation and competitive moats of many technology firms. This potential disruption creates an opportunity for investors to reallocate capital toward sectors that provide the essential building blocks for both the digital and physical economies.

Specifically, she highlights companies in industries like mining, power generation, and industrial manufacturing. These "builder" sectors are seen as critical enablers of the AI boom itself, supplying the raw materials, energy, and infrastructure required to power and build the future. Furthermore, their tangible assets and operations are less susceptible to direct displacement by generative AI tools.

This strategic shift underscores a broader theme: while AI is a transformative technology, the greatest investment gains may lie in the companies that facilitate its expansion and operate beyond its most immediate automated reach. The advice signals a move to anchor portfolios in the foundational industries that underpin global growth.