Should companies be choosing between profit and progress and what are investor thoughts on AI? When Rightmove announced last week that it would ramp up investment in artificial intelligence, few expected the market’s reaction to be quite so dramatic. Shares plunged as much as 28% before ending the day down 12%, wiping more than £1bn off the company’s value. All because the UK’s biggest property portal said it would spend £12m of profit and £6m on capital projects to power its AI ambitions.
It’s a curious moment, isn’t it?
We’re told that AI is the future, a transformative force that will redefine efficiency, creativity, and growth. And yet, the moment a company actually commits to the technology, investors seem to panic.
So what’s really going on here? Do investors not trust AI… or are they simply wary of the short-term hit to profits?
The Rightmove Rethink
Rightmove’s plan isn’t wild speculation, it’s a considered push into areas like AI-powered search, digital valuations, and smarter workflow tools for estate agents. The company has a partnership with Google Cloud, and CEO Johan Svanstrom has said AI will be “absolutely central” to operations going forward.
In many ways, it sounds like a textbook example of a company evolving to stay relevant. After all, Rightmove’s original success came from being at the right intersection, the internet and our love of property. As analyst Anthony Codling neatly put it, “2 + 2 = 5.”
But Codling also hinted at the tension beneath the surface: the difference between tending the magic money tree and shaking it up. When profits have grown almost every year, do investors really want a shake-up, even one with AI in its title?
Fear of Missing Out vs Fear of Losing Profit
Rightmove isn’t alone here. Across sectors, we’re watching a tug-of-war play out between innovation and investor confidence which represents a change in investor thoughts on AI.
AI, by its nature, asks for faith. It’s a long game, one that requires upfront investment, experimentation, and often a period of lower margins. For public companies used to steady quarterly gains, that’s uncomfortable.
Investors might be asking:
- Is AI a strategic necessity or a shiny distraction?
- Will it make a real impact on growth, or just consume budgets and headlines?
- And crucially, should management chase long-term transformation if it dents next year’s earnings?
These are fair questions. But perhaps the bigger question is: should it really be an either/or situation?
Balancing Act: The “Both/And” Approach
At Trimontium, we often talk about balance, between risk and return, innovation and stability. The companies that thrive over time tend not to be those that chase every new wave, nor those that cling to the status quo. They’re the ones that find ways to integrate innovation without losing sight of operational discipline.
AI shouldn’t be a binary choice. It’s not “invest or die,” nor “profit now or later.” It’s about timing, execution, and trust, from boards, employees, and yes, investors too.
So, How Much Do We Trust AI?
Maybe that’s the real takeaway from Rightmove’s wild market day. Investors don’t distrust AI … they distrust uncertainty. The companies that will win this next phase are the ones that can explain the journey clearly, showing not just the potential upside of AI but how it integrates with the fundamentals that built their business in the first place.
As we move through 2025, the question isn’t whether AI belongs at the heart of business, it’s whether investors and executives can learn to see profit and progress not as competing forces, but as parts of the same story. It’s clear that investor thoughts on AI are changing.
Trimontium View:
AI isn’t a silver bullet, but it’s also not optional. The trick for investors and for leadership, is to stay curious, patient, and disciplined enough to let technology prove its worth without losing sight of what makes a business valuable today.
Author: Deborah Holmwood, Client Change & Transformation Partner.
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