The speed and scale of artificial intelligence-related capital expenditures this year—led by technology companies Alphabet, Amazon, Meta and Microsoft and estimated to top $1 trillion by 2027—are reshaping markets and sparking some of the fiercest debates over whether revenue will grow to justify these historic investments.
At the same time, this technology has been transforming the way the world lives and works, including the role of the equity sell-side analyst and the sectors they cover.
Extel spoke with top-ranked analysts from this year’s 55th All-America Research Team survey about how AI is transforming their job—and what remains deeply human about providing equity research in 2026. These No. 1 analysts cover sectors as varied as oil and gas exploration and production; biotechnology; gaming and lodging; and medical supplies and devices. One analyst is ranked in four of them—the only person to achieve that in this year’s survey. Regardless of sector, there is consensus that AI is and will continue to be transformational and is doing so at an unfettered pace.
“The business environment is evolving by the month—and at one of the fastest paces of change I have seen,” said one analyst. “I have always maintained that equity research must be led by technology, and this year has proven the most compelling illustration of that principle.”
It puts pressure for analysts to do better research, more quickly, said another. “Use it to amplify your ideas and test ideas that were otherwise too time-consuming to pursue,” he said. “It’s truly changed everything when it comes to producing research.”
AI, however, will not replace the human relationships that ultimately drive the best and most impactful research, said another: “While we may outsource more rote assignments to our digital assistants, the need for personal touch will not go away.”
Another No. 1 analyst concurs. “AI is unlikely to replace what clients value most from research analysts: seasoned judgment about what is already in the price, how expectations are set, management quality, changing macro conditions, and what new information means for stocks going forward,” he said.
Read on to learn more from these top-ranked analysts about this AI revolution; trends the market is underestimating in 2027; and what the state of sell-side research could look like in five years from the analysts who are writing its future now.
How is AI transforming your job? How is it not?
Still in the early stages, AI is becoming an influence across multiple facets of equity research. First in managing the day-to-day minutia, saving time in emails, scheduling, news, invites—just scratching the surface.
Second, Energy Services touches every global oil and gas market across dozens of product lines, so it’s a great tool for getting up to speed quickly on a product line, end market or a technology—probably the most use of AI we’re seeing today.
Third is in content, where AI can help immensely in terms of datasets…but is also a very slippery slope when it comes to reports—the written word still matters most.
One area where AI has not transformed research: idea generation. While AI could certainly help to heat up or cool down a thesis, ultimately, our ideas for stock and sector recommendations can only be organically, human-generated.
What trend do you think the market is underestimating heading into 2027?
The largest oil shock in history will have repercussions resonating well beyond the end of the decade. The conflict in the Middle East is creating a structural shift in energy markets, as consumers prioritize energy security, diversity of supply and rebuilding strategic petroleum reserves. This will require a multi-year upstream investment cycle across the Middle East, deepwater and Latin America, which is why we are so bullish on Services over the next 2-3 years.
What do you think sell-side research will look like in 5 years?
Doing more with less. As I have seen in the sector I cover, the past 25 years in equity research has seen a greater focus on efficiencies, removing costs and better aligning with our clients. This should accelerate through AI.
How is AI transforming your job? How is it not?
AI is commoditizing certain aspects of the job, particularly around basic financial reporting and speed. Where AI is helping is in processing large data sets, where we can now query the information more effectively to get a more detailed picture of what is happening. What is not changing in equity research is how to interpret that data, such as helping investors to understand what does something mean for a company and how does that vary vs. expectations.
What trend do you think the market is underestimating heading into 2027?
It is a very exciting time in healthcare as many companies have shaken off their COVID hangovers, and we are seeing increased AI-driven innovation in drug discovery as well as efficiency gains in areas of healthcare services (where efficiency gains have been relatively more stagnant in recent years). Going forward, there will be fits and starts to AI adoption within companies, driving bursts of innovation followed by periods of digestion, but the overall direction of travel is forward at an increasing rate.
What do you think sell-side research will look like in 5 years?
Sell-side research will continue to evolve as there is a market need to have analysts who understand companies, industries, and stocks. However, how they deliver value to their clients will change. Writing basic earnings summaries will become increasingly de-valued, with a higher emphasis on relationships, thoughtful analysis, and having an opinion.
