Index Education

S&P Kensho Artificial
Intelligence Enablers &Adopters Index Selection
Process Overview
Contributor
Srineel Jalagani, CFASenior Director
Thematic Indicessrineel.jalagani@spglobal.com

S&P Dow Jones Indices (S&P DJI) launched the S&P Kensho
Artificial Intelligence Enablers & Adopters 50 Point Decrement Index
in September 2023. The index seeks to measure the performance of
the underlying index, the S&P Kensho Artificial Intelligence Enablers& Adopters Index, less a fixed amount of 50 bps.
S&P DJI’s process of constructing all S&P Kensho Thematic Indicesstarts with the definition of an industry model for a theme. The goalof this step is to define the scope and technologies in focus for thetheme. In the case of the S&P Kensho Artificial Intelligence (AI)theme, S&P DJI uses a two-pronged approach to select thecompanies most relevant to the widespread applications of AI acrosssectors and industries.
S&P DJI draws a distinction between two contributing segments to AI
sectors and industries:i) Companies that are leading the way in building the infrastructure
and the applications that enable AI (AI Enablers); andii) Companies that are adopting AI within their business segments
to improve their efficiency and expand their product offerings (AIAdopters).
S&P DJI addresses this first contributing segment, AI Enablers, withthe S&P Kensho Artificial Intelligence Enablers Index. The index
measures the performance of companies developing and enabling
the technology, infrastructure and services that are propelling thegrowth and functionality of AI, specifically the following.

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S&P Kensho Artificial Intelligence Enablers & Adopters Indexes Selection Process Overview

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Hardware, including graphics processing units (GPUs), central processing units (CPUs),
application-specific integrated circuits (ASICs), field-programmable gate arrays (FPGAs),
accelerators and other specialized chips, and computing equipment that support highperformance AI and machine learning (ML) computations and operations.
Software and solution developers of AI algorithms and products, including large language
models (LLM), generative AI, deep learning, robotic process automation, human-tomachine communication and other AI methods.
Infrastructure services (cloud, edge and hybrid computing) and big data technology,
which are integral to enabling data-intensive AI capabilities.
Products and services that provide a framework specifically for AI applications, including
AI as a service platforms, cloud-based ML development platforms, automated machinelearning (AutoML) tools, AI-based analytics and data visualization platforms, andcomputer vision technology.
Data curation and data management providers of big data extract, transform and load(ETL) solutions that support the effective training and functioning of AI models.
The starting universe of the S&P Kensho Artificial Intelligence Enablers Index is all U.S.-listedcompanies. The industry description previously described is distilled down to relevant searchterms, which are then searched for by Kensho’s natural language processing (NLP) process in
the SEC filing(s) of each U.S.-listed company. Kensho’s NLP process flags a relevant filingbased on the use of any of the search terms in the context of a product or a service that thecompany offers. The companies with filings that have been deemed relevant by the NLP
model are further reviewed by a human index analyst, and after filtering for minimum market
capitalization and USD 3 million average daily trading volume (3m ADTV) thresholds, they
become a part of the index composition.
More details of this process can be found in the S&P Kensho Indices Methodology.
S&P DJI addresses the second contributing segment, AI Adopters, by selecting companies
that are leading the way in adopting AI technologies for their business purposes (there is no
separate AI Adopters index.) The starting universe for the AI Adopters contributing segment
includes all stocks that belong to any of the following indices.
•••••

S&P Kensho Autonomous Vehicles Index
S&P Kensho Robotics Index
S&P Kensho Smart Factories Index
S&P Kensho Space Index
S&P Kensho Enterprise Collaboration Index

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S&P Kensho Digital Communities Index
S&P Kensho Alternative Finance Index

From this universe of stocks, S&P DJI uses the same Kensho NLP process described
previously to search through the company filings to identify firms that mention one or more ofthe following: investment in AI technology, existing or planned product or service offerings thatleverage or deliver on AI, or business segment activities that are uniquely positioned to gainfrom AI technological developments. The companies with filings that have been deemed
relevant by the NLP model are further reviewed by a human index analyst to be selected forinclusion in the AI Adopters segment. Note these companies have been pre-filtered forminimum market capitalization and 3m ADTV thresholds by virtue of having been included in
one of the previously listed indices.
Together, the final stock list representing the AI Adopters segment, along with the constituentsof the S&P Kensho Artificial Intelligence Enablers Index, form the S&P Kensho Artificial
Intelligence Enablers & Adopters Index.
S&P DJI has provided the preceding overview for convenience purposes only. For complete
details of the methodology and selection criteria for the S&P Kensho Artificial Intelligence
Enablers & Adopters Index, please view the methodology document.

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S&P Kensho Artificial Intelligence Enablers & Adopters Indexes Selection Process Overview

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