NEW YORK– Artificial intelligence could affect 90% of occupations globally while adding as much as $16 trillion in market value to the S&P 500, Morgan Stanley Research said in a report on Thursday.

The bank estimated that full adoption of AI across S&P 500 companies could generate an annual net benefit of $920 billion. Roughly $490 billion would come from “agentic AI” – software that can plan and execute tasks with minimal human input – and $430 billion from “embodied AI” such as humanoid robots.

Morgan Stanley said productivity gains from the technology could lift the index’s market capitalization by $13 trillion to $16 trillion over the long term.

“While some roles may be automated, others will see enhancement through AI augmentation, and AI is likely to create entirely new roles,” said Heather Berger, U.S. economist at Morgan Stanley.

The report pointed to growing demand for roles such as Chief AI Officer, as well as expansion in fields like data governance, compliance and cybersecurity.

Sectors with the greatest potential for AI-driven value include consumer staples distribution and retail, real estate management and development, and transportation, the report said.

Morgan Stanley added that with AI capabilities doubling roughly every seven months, investors should closely track adoption trends, warning that the scale and speed of value creation remain underappreciated.