Analysts at Bank of America say that artificial intelligence (AI) has the potential to unleash extraordinary productivity growth, similar to the impact of computers in the 1990s and the post-WWII energy revolution.

In its latest “Research Investment Committee (RIC) report,” BofA names three ETFs to invest in if AI proves to be a disruptive technology, as well as 10 single stocks to buy if AI only moderately increases productivity.

According to a recent PwC study, artificial intelligence could benefit the world economy by up to $15.7 trillion by 2030, while IDC predicts the global AI market will reach $900 billion by 2026.

Productivity growth is crucial for improving living standards, Bank of America said. The most recent substantial rise in productivity occurred in the late 1990s, when computers permeated the economy, resulting in an average annual productivity growth of 3.2% from 1996 to 2004.

3 AI ETFs To Own If AI Is Transformative

Investors who believe that AI will spark an economy-wide productivity boom should consider owning AI ETFs because “it’s hard to pick the ultimate winners and losers of a technological revolution,” Bank of America analysts said in a Tuesday note.

AI thematic ETFs are more diversified in terms of both sectors and countries than basic tech and semiconductor funds while providing liquid access.

10 AI Stocks To Buy If AI Improves Productivity Only Marginally

Most tech innovations, while profitable, often provide only marginal improvements in productivity.

A structural change toward greater inflation and interest rates could stymie the spread of AI. “More Fed hikes and an environment with higher rates for longer present material risks for continued outperformance of tech,” Bank of America said.

Investors who have doubts about the transformative potential of AI should focus on companies that are successfully leveraging AI technology to enhance their business models, the analysts said.

Bank of America screened 10 stocks outside the hardware and software industries that have outperformed the S&P 500 over the last decade.

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