Analysis-After the buzz, investors are doing their own homework on AI

AI (Artificial Intelligence) letters are placed on computer motherboard in this illustration taken, June 23, 2023. REUTERS/Dado Ruvic/Illustration

MILAN (Reuters) - The rapid adoption of generative artificial intelligence has boosted markets this year, but after the initial euphoria, investors are waking up to the possible risks, including the need to be highly selective in stock-picking.

Businesses ranging from IT services and consulting to media, information and education are now under portfolio managers' microscopes to assess the potential for AI disruption.