State and Local Pension Funds Hold Between $578 Billion and $706 Billion in AI-Related Assets
A new analysis by the Equable Institute reveals that state and local pension funds have significant exposure to artificial intelligence, with estimated holdings ranging from $578.1 billion to $706.6 billion as of June 30, 2026. This represents approximately 9% to 11% of the total $6.42 trillion in state and local pension assets. The study notes that AI-related companies constitute 35.1% of reported public equity holdings among these funds. Investment concentration is high, with the 'Magnificent 7' accounting for 63.3% of all public AI-related holdings. NVIDIA ($47.3 billion), Apple ($42.5 billion), and Microsoft ($28.2 billion) represent the largest individual positions. While AI growth could stabilize pension plans, Equable Institute warns that a potential 'AI bubble' bursting could lead to substantial losses for stakeholders due to this high level of concentration.
Topics: AI exposure Equity Concentration Public Pension Funds