Key Takeaways
- • Ontario Teachers' Pension Plan executives Gillian Brown, Jonathan Hausman and Stephen McLennan concluded that artificial intelligence was the dominant theme at the 2026 Milken Institute Global Conference in Los Angeles in May, and that AI adoption alone will not drive returns.
- • An Ipsos survey commissioned by Ontario Teachers' covering 1,270 global investors found 73 percent were favourable about the investment environment heading into 2026 and 86 percent viewed technological change as a tailwind.
- • The fund argued that companies integrating AI into core processes, managing data effectively and measuring productivity and cost outcomes will outperform those treating AI as a reputational signal, creating an edge for active owners with operating capabilities.
- • Private equity and credit investors are scrutinizing software valuations, focusing on customer pricing durability, AI-driven competitive pressure and whether slowing growth is cyclical or structural.
- • Geopolitics is shifting from a background risk to a direct driver of revenues, regulation and competitive positioning, with aerospace and defence attracting fresh private-market interest on rising defence budgets.
Summary
Ontario Teachers' Pension Plan executives Gillian Brown, chief investment officer for public and private investments; Jonathan Hausman, chief strategy officer; and Stephen McLennan, chief investment officer for asset allocation, described the investor conversation at the 2026 Milken Institute Global Conference as having shifted decisively toward AI. In a post-conference reflection, they wrote that the central question is no longer which sectors AI will reshape but which companies and asset owners can execute against that reality.
An Ipsos survey commissioned by Ontario Teachers' covering 1,270 global investors found 73 percent felt favourable about the investment environment heading into 2026, with 86 percent viewing technological change as a tailwind. The executives said this optimism requires discipline to be useful. Investors, the majority of whom are US-based, appeared comfortable looking past current geopolitical tensions, focusing on strong markets, continued deal activity and AI's growth potential. For long-term asset owners managing defined benefit obligations, the executives noted, that comfort level raises the stakes on portfolio construction and scenario planning.
On AI adoption, the fund drew a clear distinction: companies that integrate AI into key business processes, manage data effectively and measure productivity and cost outcomes will pull ahead of those treating it as a reputational signal. The executives argued this gap is where active owners with operating capabilities will find an advantage. According to the fund, AI depends on data centres, power generation, transmission and cooling systems, with demand high and supply constrained in many markets. The fund cautioned against conflating infrastructure exposure with AI hype, stressing that contract quality, power availability, regulation and financing costs remain the relevant evaluation criteria.
Software valuations drew significant attention in private equity and credit discussions. Buyers and lenders are pressing on whether customers will sustain current pricing, whether AI introduces new competitive pressure, and whether slowing growth reflects the business cycle or structural product differentiation.
On geopolitics, the fund said the tone at Milken was more concrete than in prior years. Aerospace and defence stood out as a sector attracting fresh interest from private-market investors, driven by rising defence budgets and rearmament priorities. The fund said geopolitics is shifting from a background risk to a direct driver of revenues, regulation and competitive positioning across sectors, a consideration with direct implications for asset allocation and manager selection.
An Ipsos survey commissioned by Ontario Teachers' covering 1,270 global investors found 73 percent felt favourable about the investment environment heading into 2026, with 86 percent viewing technological change as a tailwind. The executives said this optimism requires discipline to be useful. Investors, the majority of whom are US-based, appeared comfortable looking past current geopolitical tensions, focusing on strong markets, continued deal activity and AI's growth potential. For long-term asset owners managing defined benefit obligations, the executives noted, that comfort level raises the stakes on portfolio construction and scenario planning.
On AI adoption, the fund drew a clear distinction: companies that integrate AI into key business processes, manage data effectively and measure productivity and cost outcomes will pull ahead of those treating it as a reputational signal. The executives argued this gap is where active owners with operating capabilities will find an advantage. According to the fund, AI depends on data centres, power generation, transmission and cooling systems, with demand high and supply constrained in many markets. The fund cautioned against conflating infrastructure exposure with AI hype, stressing that contract quality, power availability, regulation and financing costs remain the relevant evaluation criteria.
Software valuations drew significant attention in private equity and credit discussions. Buyers and lenders are pressing on whether customers will sustain current pricing, whether AI introduces new competitive pressure, and whether slowing growth reflects the business cycle or structural product differentiation.
On geopolitics, the fund said the tone at Milken was more concrete than in prior years. Aerospace and defence stood out as a sector attracting fresh interest from private-market investors, driven by rising defence budgets and rearmament priorities. The fund said geopolitics is shifting from a background risk to a direct driver of revenues, regulation and competitive positioning across sectors, a consideration with direct implications for asset allocation and manager selection.
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