Few of us would dispute that AI’s been the standout theme in the stock market over the past year. For 2026, I don’t see this changing. In fact, I think further AI innovation, along with increased adoption, will happen. Therefore, investors might logically want to find FTSE 100 stocks that could do well as this scenario unfolds. Here’s one that I’ve spotted.
Already pushing AI
I’m talking about RELX (LSE:REL), the global information and analytics company. So straight away, my mind’s already thinking it can benefit from efficiencies derived from AI. Key clients in sectors such as medical research and legal rely on large, high-quality structured datasets. Therefore, having RELX’s ability to deliver insights, reduce decision times, and automate previously manual tasks is of huge advantage, and exactly where AI comes in.
To be clear, RELX is already using this new technology. For example, its legal and professional segments have been deploying AI-powered tools to automate document review and generate analytics. As a result, it’s making its services stickier and harder to displace with other solutions.
The latest trading update from October showed revenue up 7% versus the same period last year. In part, this was due to “leveraging deep customer understanding to combine leading content and data sets with powerful artificial intelligence and other technologies”.
This highlights one reason why the company could benefit going forward. The more customers use the enhanced tools, the more the AI services can be tweaked and improved. So more adoption is only a good thing, as provides RELX with more information on what works and what needs to be changed.
More future benefits
Higher adoption will also benefit the business, as new sectors are likely to see greater demand this year and beyond. For example, there are many applicable uses in areas where RELX currently has limited exposure, outside of healthcare and professional services. As these companies look to take on better analytics data, it’s well-placed to capture this new audience.
Further, existing clients could boost current spending with RELX as they become more comfortable with the AI-driven enhancements and new tools. This could mean revenue increases even without having new clients. This could be an easy win, combined with the high client retention stickiness mentioned earlier.
Risks to note
Even with the share price down 16% over the past year, the price-to-earnings ratio is 26.42, comfortably above the FTSE 100 average. Some might see the stock as being overvalued.
One factor in the share price performance over the last year has been a high bar of investor expectations. The stock fell 12% in August after posting good half-year results, but ultimately not as good as people had hoped for. This remains a risk going forward if it can’t keep up with peoples’ expectations.
Even with these concerns, I think it could do well this year and therefore could be a stock for investors to consider.
