Ontario Teachers' Pension Plan shares five takeaways from a major Los Angeles investment conference
Artificial intelligence has stopped being one investment theme among many — at the 2026 Milken Institute Global Conference, it was the only theme that mattered.
That is the assessment of three Ontario Teachers' Pension Plan executives who attended the May gathering in Los Angeles.
Chief investment officer for public and private investments Gillian Brown, chief strategy officer Jonathan Hausman, and chief investment officer for asset allocation Stephen McLennan wrote in a post-conference reflection that the investor conversation has shifted decisively.
The question is no longer which sectors AI will reshape, but which companies and asset owners can actually 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.
Ninety-eight percent said they are actively embedding AI within their own businesses.
The fund's executives said that optimism, while welcome, requires discipline to be useful.
Investors, the majority of whom are US-based, generally appeared comfortable looking past current geopolitical tensions, focusing instead on strong markets, continued deal activity, and AI's growth potential, they wrote.
For long-term asset owners managing defined benefit obligations, that comfort level raises the stakes on portfolio construction and scenario planning.
On AI adoption itself, 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.
That gap, the executives argued, is where active owners with operating capabilities will find an advantage.
Physical infrastructure emerged as an underappreciated dimension of the AI trade.
According to the fund's reflection, AI depends on data centres, power generation, transmission and cooling systems, with demand for these assets 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.
No clear consensus has emerged on how long a reset will take.
On geopolitics, 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.
More broadly, 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.
