AI and Healthy Longevity – the perfect pair for investors?
On the stock market, the boom in artificial intelligence (AI) is stealing the show from more defensive areas. In their analysis, Chi Tran-Brändli and Clément Maclou nevertheless argue that it is worth taking a closer look at titles from the universe of the sustainable investment theme Healthy Longevity. Not only do they sport structural strengths – AI could even reinforce these advantages.
Authors: Clément Maclou, Lead Portfolio Manager, and Chi Tran-Brändli , Senior Portfolio Manager
The most important takeaways on the interplay of AI and Healthy Longevity in the portfolio:
- After the geopolitical fears have subsided, investors are once again fully focused on artificial intelligence (AI). More defensive areas such as the healthcare sector are temporarily moving out of view.
- However: demographics outlasts the ups and downs of markets and geopolitics. The structural trend towards an ageing population is likely to ensure steadily increasing demand for offerings from the investment universe of the Healthy Longevity theme.
- Should there be unexpected setbacks in the AI sector, the defensive characteristics of this investment theme can help hedge an investment portfolio.
DRAM instead of IRAN: this saying sums up the latest developments on the financial markets. As soon as the fears surrounding the conflict in the Middle East subsided at the end of March, investors returned with fervor to the transformational growth potential of artificial intelligence (AI) (DRAM stands for Dynamic Random Access Memory, the computer working memory that is essential for AI calculations). They were obviously not being deterred by the dizzyingly high valuations of stocks associated with this future technology.
The return of the “risk-on” mode in the stock markets also means that defensive stocks must retreat into the background. This shift has also affected the proverbially defensive investment theme Healthy Longevity, as defined in our sustainable equity strategy.
AI story drowns out the defensive qualities of the longevity theme
This has had the following effect: after a temporary catch-up phase from October 2025 until this past February, healthcare stocks in particular once again had to take a back seat to the all-dominating “AI story”. This happened despite the relatively cheap valuation of these stocks and the fact that companies addressing the opportunities and challenges of the global aging demographics are among the pioneers in the application of AI.
In our view, however, it is not productive from an investment perspective to have to choose between AI and the longevity investment theme. This pits two areas off against each other that can ideally complement one another: the breathtaking growth story of AI stocks on the one hand and, on the other, the investment theme Healthy Longevity, supported by structural trends. We consider them to represent an attractive “pair trade” in a portfolio set up according to sustainable criteria.
In our opinion, the following arguments suggest that stocks from the Healthy Longevity universe will continue to be structural winners in the long run:
- Deceptive spotlight The focus on a dominant narrative is an integral part of investment psychology. In such phases, structural investment themes as Healthy Longevity can temporarily disappear from investors’ radar. This is not because the attractive fundamental characteristics of those themes have deteriorated. Rather, it is because attention has shifted to other areas. But the market’s interest could pivot suddenly and forcefully. Thus, recognizing such patterns and preparing for them at an early stage could make the difference between success and failure of an investment strategy. Against this backdrop, we view the long-term investment theme of longevity as an antidote to unexpected ‘dips’ in the attractive, but now highly valued, AI sector.
- Ever older Long-term, structural trends outlast the ups and downs of markets and geopolitics. The best example of this is the global aging demographics: the average age of the global population has been progressing inexorably for decades. According to UN surveys from 2022, mortality between 1950 and 2021 has fallen significantly across all age cohorts under 55 worldwide (see chart below). Clear differences over time can also be seen mortality in the senior population. In 1950, the 70–74 age cohort had the highest mortality. In 2021, the highest mortality has shifted upwards to the 80–84 age cohort.
- Steady demand The demographic trend has far-reaching consequences for health: older people are more susceptible to chronic illnesses and all kinds of ailments. In our view, this suggests that the demand for treatments for these conditions, for diagnostics, and for medical technologies will steadily increase. At the same time, all of us probably hope to remain healthy, active and independent for as long as possible. This wish is essentially the basis of the Healthy Longevity investment theme and its sub-themes as we have defined them for our sustainable equity strategy. In addition to healthcare and Medtech stocks, these sub-themes include healthy lifestyle, finance, and products and services for older people, the so-called silver economy.
Demographics argue in favor of the healthcare sector: distribution of deaths by age group in 1950 and 2021 (excluding age group 0–4, as % of all deaths in the respective year)
Soaring healthcare costs – a driver for AI and longevity at the same time
The potential of the disruptive AI technology and Healthy Longevity move even closer together when another important driver of this investment theme is considered: healthcare costs.
As a result of the trend towards longevity, healthcare costs in industrialized countries are rising sharply. Expenditure has been climbing for years and, according to estimates by the OECD in 2024, already accounts for between 8% and 18% of GDP in OECD countries. Now that the oldest baby boomers are turning 80, this percentage is likely to rise further. At the same time, the working-age population is shrinking. This exacerbates the challenges in financing healthcare systems.
The challenge of rising healthcare costs dovetails with the cost-savings promises of AI. The possible applications specifically in combating soaring healthcare costs are manifold. For example, in the early detection of diseases, pharmaceutical research and development, and the optimization of clinical trials. And this is by no means science fiction: As we have already discussed, companies from the Healthy Longevity universe are among the pioneers in the application of AI.
Longevity benefits from AI development: three company examples
From an investment perspective, the combination of AI and healthcare can thus be further substantiated by the fact that there are indeed companies in the healthcare sector that play a pioneering role in the application of this future technology and have built solid barriers to entry against potential competitors with their business model. Such attractive investment prospects are currently often available at relatively low prices due to the recent correction in defensive names. This is exemplified by the following companies:
- IQVIA: The US company is a global leader in analytics, technology solutions and contract services in pharmaceutical commercialization and R&D. Among other things, the company possesses a proprietary database of more than 1.2 billion healthcare data records. The aim is to help healthcare organizations advance clinical research and improve treatment outcomes for patients, an important concern from a sustainable investment perspective.
AI perspective: IQVIA recently launched an AI platform in collaboration with chip manufacturer NVIDIA and has already provided clients with AI agents to better manage and exploit the vast amount of data. This could further accelerate pharmaceutical development and demand for the company’s services. The huge, exclusive database also gives the company a dominant market position that can hardly be substituted.
- Waystar: The US company has been built in 2017 with the intention to cut the enormous amount of administrative inefficiencies and thus costs in the complex US healthcare system. With a cloud-based platform, it offers end-to-end support to hospitals and medical practices in their often highly complex payment processes.
AI perspective: With its Altitude AI model, the company aims to increase the accuracy of invoices and claims. This is intended to reduce the number of rejected transactions – a classic use of AI to increase efficiency and ultimately counter rising healthcare costs. AI is also cementing its strong number two position (behind the giant UnitedHealth) as a clearinghouse of medical transactions in the US.
- Hinge: This US company brings physiotherapy to a mobile app. Hinge’s platform is designed to treat a wide range of musculoskeletal conditions, including acute or chronic pain and post-operative rehabilitation. Customers include companies that offer the application as part of health programs for their employees.
AI perspective: The telehealth app uses AI, in combination with wearable sensors, to guide patients step by step through training sessions. The low threshold to access training is intended to help address musculoskeletal problems as early as possible and thus prevent costly long-term conditions.
Our conclusion:
Phases characterized by macroeconomic or geopolitical upheavals often offer an opportunity to reconsider long-term themes at more attractive valuations. Investors who focus exclusively on the current situation or on narratives dominating the market take a risk: they run the danger of overlooking forces such as demographics or innovation that could continue to shape healthcare demand over the coming decades. With the necessary expertise, it is already possible to identify companies that combine the future technology AI with structural demand trends.
Legal notices
Legal notices
Legal notice Switzerland
This document is for information and advertising purposes only. It is intended for distribution in Switzerland and is not intended for investors in other countries.
It does not constitute an offer or a recommendation to purchase, hold or sell financial instruments or to obtain products or services, nor does it form the basis for a contract or an obligation of any kind. The recipient is advised to review the information, possibly with the assistance of an advisor, to determine its compatibility with their personal circumstances as well as its legal, regulatory, tax, and other implications. The information contained in this publication may be adjusted at any time.
The document was prepared by Zürcher Kantonalbank with customary due diligence and may contain information from carefully selected third-party sources. However, Zürcher Kantonalbank provides no warranty as to the correctness and completeness of the information contained therein and accepts no liability for damages resulting from the use of the document or information contained therein.
Unless otherwise stated, the information refers to Zürcher Kantonalbank's asset management under the Swisscanto brand, which primarily includes collective capital investments under Swiss, Luxembourg and Irish law (hereinafter referred to as "Swisscanto funds").
The investment opinions and assessments of securities and/or issuers contained in this document have not been prepared in accordance with the rules on the independence of financial analysts and therefore constitute marketing communications (and not independent financial analysis). In particular, the employees responsible for such opinions and assessments are not necessarily subject to restrictions on trading in the relevant securities and may in principle conduct their own transactions or transactions for Zürcher Kantonalbank in these securities.
The sole binding basis for purchasing Swisscanto funds is the current fund documents (e.g. fund agreements/contractual conditions, prospectuses, key investor information or basic information sheets as well as annual reports), which can be obtained from products.swisscanto.com/, Swisscanto Fund Management Company Ltd., Bahnhofstrasse 9, CH-8001 Zurich (also representative of the Luxembourg Swisscanto funds) or from all branch offices of Zürcher Kantonalbank. The paying agent for the Luxembourg Swisscanto funds in Switzerland is Zürcher Kantonalbank, Bahnhofstrasse 9, CH-8001 Zurich.
Carne Global Fund Managers (Schweiz) AG is the representative for funds domiciled in Ireland. Zürcher Kantonalbank is the paying agent for the Irish Swisscanto funds in Switzerland and Luxembourg funds.
It should be noted that any information about historical performance does not indicate current or future performance, and any performance data provided may not consider the commissions and costs incurred when issuing and redeeming fund units. Any estimates regarding future returns and risks contained in the document are for informational purposes only. Zürcher Kantonalbank does not provide any guarantee for this.
Every investment involves risks, especially with regard to fluctuations in value and return.
In terms of any sustainability information, please note that there is no generally accepted framework or list of factors in Switzerland that has to be considered in order to ensure the sustainability of investments.
For Irish and Luxembourgish Swisscanto funds, information on sustainability-related aspects in accordance with the Disclosure Regulation (EU) 2019/2088 is available at products.swisscanto.com/.
The products and services described in this publication are not available to US persons in accordance with the applicable regulations. This publication and the information contained in it must not be distributed and/or redistributed to, used or relied upon by, any person (whether individual or entity) who may be a US person under Regulation S of the US Securities Act of 1933. US persons include any US resident; any corporation, company, partnership or other entity organized under any law of the United States; and other categories set out in Regulation S. Status of the data (unless otherwise stated): 03.2025
© 2026 Zürcher Kantonalbank. All rights reserved.
Legal notice international
This document only serves advertising and information purposes and is not directed at persons in whose nationality or place of residence prohibit access to such information under applicable law. Where not indicated otherwise, the information concerns the collective investment schemes under the law of Luxembourg managed by Swisscanto Asset Management International S.A. (hereinafter "Swisscanto Funds"). The products described are undertakings for collective investment in transferable securities (UCITS) within the meaning of EU Directive 2009/65/EC, which are governed by Luxembourg law and subject to the supervision of the Luxembourg supervisory authority (CSSF).
This document does not constitute a solicitation or invitation to subscribe or make an offer to purchase any securities, nor does it form the basis of any contract or obligation of any kind. The sole binding basis for the acquisition of Swisscanto Funds are the respective published legal documents (management regulations, sales prospectuses and key information documents (PRIIP KID), as well as financial reports), which can be obtained free of charge at products.swisscanto.com/. Information about the sustainability-relevant aspects in accordance with the Regulation (EU) 2019/2088 as well as Swisscanto's strategy for the promotion of sustainability and the pursuit of sustainability goals in the fund investment process are available on the same website.
The distribution of the fund may be suspended at any time. Investors will be informed about the deregistration in due time.
The investment involves risks, in particular those of fluctuations in value and earnings. Investments in foreign currencies are subject to exchange rate fluctuations. Past performance is neither an indicator nor a guarantee of future success. The risks are described in the sales prospectus and in the PRIIP KID.
The information contained in this document has been compiled with the greatest care. Despite professional procedures, the correctness, completeness and topicality of the information cannot be guaranteed. Any liability for investments based on this document will be rejected.
The opinions and assessments contained in this document regarding securities and/or issuers have not been prepared in accordance with the regulations governing the independence of financial analysts and therefore constitute marketing communications (and not independent financial analyses). In particular, the employees responsible for such opinions and assessments are not necessarily subject to restrictions on trading the relevant securities and may, in principle, conduct their own transactions in these securities.
The document does not release the recipient from his or her own judgment. In particular, the recipient is recommended to check the information for compatibility with his or her personal circumstances as well as for legal, tax and other consequences, if necessary, with the help of an advisor. The prospectus and PRIIP KID should be read before making any final investment decision.
An overview of investors' rights is available at swisscanto.com/int/en/legal/summary-of-investor-rights.html.
The products described in this document are not available to U.S. persons under the relevant regulations (in particular Regulation S under the U.S. Securities Act of 1933). Data as at (where not stated otherwise): 03.2025
© 2026 Swisscanto Asset Management International S.A. All rights reserved
