Nasdaq CEO Adena Friedman highlights the transformative impact of AI across industries, noting rapid returns on investment and predicting accelerated adoption as infrastructure and regulatory reforms progress. She emphasizes the growing role of both private and public investment in AI, the importance of making public markets more attractive, and the continued global appeal of U.S. financial markets alongside rising activity in Europe.
Nasdaq CEO Adena Friedman discusses the transformative impact of artificial intelligence (AI) on the global economy, emphasizing that AI is widely recognized as a technology that will redefine every industry. She notes that significant investment is required to build out the foundational infrastructure for AI, comparing the current level of investment—about 1% of GDP—to previous technological revolutions that demanded 2-5% of GDP. Friedman highlights that while early progress has been made, especially by startups, integrating AI into large enterprises is a more complex process due to the need for security, resiliency, scalability, and organizational change management.
Friedman points out that companies already using AI are seeing substantial returns, with some reporting a 2.8 times return on investment in a short period. This success is building confidence among business leaders to accelerate adoption, scale up their efforts, and manage the necessary organizational changes. She predicts that the adoption curve for AI will steepen rapidly as more proof points emerge, driving further investment and integration across industries.
On the topic of financing, Friedman explains that much of the current investment in AI is coming from private markets, but public companies—especially hyperscalers and semiconductor firms—are also playing a significant role. She anticipates that as the need for new infrastructure grows, more expertise and capital will be required, attracting large-scale investors like Blackstone and Brookfield. Friedman expresses enthusiasm for the prospect of innovative AI companies eventually entering the public markets to broaden their capital base and fuel further growth.
Addressing regulatory reforms, Friedman observes that the current U.S. administration is still in the early stages of implementing changes to encourage more public offerings. She notes that building the right regulatory teams and setting priorities has been the focus so far, but expects the coming year to be pivotal for rulemaking and reforms. Nasdaq is working closely with regulators, particularly the SEC, on initiatives to make the public company model more attractive, including reforms to proxy processes, disclosures, and litigation.
Finally, Friedman comments on the global appeal of U.S. financial markets, emphasizing their depth, liquidity, and strong investor base. Despite discussions at Davos about diversifying away from the U.S., she reports that foreign investment in U.S. equities has increased by $3 trillion over the past year, driven by strong returns. While the U.S. remains the top destination for innovative tech companies seeking to go public, Friedman also highlights the growth and vibrancy of markets in the Nordics and Europe, citing recent successful IPOs in Sweden as evidence of broader international momentum.