CONTRIBUTORS
Matthew Moberg
Portfolio Manager
Franklin Equity
United States
An innovation can often build upon an existing technology to make it more practical in the real world. From autonomous weeding systems that adapt on the fly, to engineered cells designed to evade immune system attack, to water infrastructure that harnesses the physics of the deep sea, this quarter’s selections remove bottlenecks to bring promising technologies closer to widespread use. While their applications differ, each reflects a broader pattern: Innovation often advances by transforming abstract ideas into usable machines or systems.
Farm robots use artificial intelligence (AI) to “see” weeds
An agricultural robotics company recently introduced a new AI model that enables its laser-weeding machines to identify plant species in real time, helping farmers discern crops from weeds. Earlier systems were more rigid. New weed species and shifting field conditions often required another round of labeling and retraining. The new system is built on a much more comprehensive plant-recognition model and can be adjusted in the field using a few example images, allowing the machine to adapt in minutes rather than undergoing a separate lengthy retraining cycle.1
Why it matters:
Precision agriculture promises lower chemical use and less manual labor, but frequent retraining has made autonomous weeding harder to scale. That matters because uncontrolled weeds have the potential to cut corn yields by about 50% and soybean yields by about 52% in the United States and Canada, costing growers nearly US$44 billion annually. Systems that use software to adapt in the field could make robotic crop management more practical.2
AI Powers Automatic Laser-weeding on Farms
AI-powered robotic arms use laser precision to identify and remove weeds among growing crops, showcasing the future of smart farming.
For illustrative purposes only.
Engineered cell therapy moves closer to a Type 1 diabetes cure
Researchers reported in early 2025 a result from a human trial showing that a person with Type 1 diabetes began producing insulin after receiving cellular therapy. In this case, insulin-producing cells, known as islet cells, were transplanted into the patient. These cells were specifically designed to avoid immune system attacks. That is notable because the cells appeared to work without the anti-rejection drugs transplants normally require.3
Why it matters:
Type 1 diabetes affects 9.2 million people worldwide, but replacing the insulin-producing cells destroyed by the disease has usually required anti-rejection drugs that carry their own risks and limitations regarding who can receive treatment. A therapy that works without anti-rejection drugs would remove one of the biggest barriers to making cell replacement a practical path toward a functional cure.4
Light-activated pacemaker dissolves after use
Researchers have developed a temporary pacemaker smaller than a grain of rice that can be injected by syringe and activated by light. Instead of wires and an external battery, the device uses tiny electrodes and the body’s own biofluids to generate power, while a soft wearable patch on the chest detects irregular heartbeats and sends near-infrared light pulses to trigger pacing. After a few days to a few weeks, the pacemaker naturally dissolves.5
Why it matters:
Temporary pacemakers are often needed after surgery, but current systems require wires that can cause infection, bleeding and tissue damage when removed. That is especially important for newborns: congenital heart defects affect nearly 1% of US births, or about 40,000 babies each year, and about one in four cases are critical. A dissolvable device could make short-term cardiac care less invasive.6
A new desalination plant works underwater
A subsea desalination system places reverse-osmosis infrastructure hundreds of meters below the ocean surface to produce freshwater. At those depths, the ocean’s own pressure helps push seawater through the filters and reduces the need for large high-pressure pumps and bulky land-based facilities. Developers say the design could reduce energy use significantly, shrink coastal land requirements and simplify filtration processes.7
Why it matters:
2.2 billion people still lacked safely managed drinking water in 2024. Traditional desalination works, but its high energy use and coastal footprint have limited how broadly it can help address water scarcity. If subsea systems can lower the cost, energy burden and land footprint of desalination, they could make reliable water access more practical for water-stressed coastal regions and water-intensive industries such as semiconductors, data centers, and mining.8
AI may help solve more crimes in the United States
A public safety technology provider is using AI to make license plate camera networks more searchable for investigators. Rather than simply reading plates, the AI tools let investigators search for vehicles using plain-language descriptions and unique visual characteristics, making camera footage much easier to use in real investigations.9 The company reported in 2024 that its platform helped solve more than 700,000 crimes annually, which would translate to roughly 10% of reported US crime.10
Why it matters:
AI could turn camera networks from passive recording tools into active investigative search tools. In 2024, only 43.8% of violent crimes and 15.9% of property crimes were cleared nationwide. Systems that let investigators search for footage using plain-language vehicle descriptions could help turn more camera data into real leads and help solve more crimes.11
Companies referenced are for illustrative purposes only and are not recommendations or indications of trading intent of Franklin Templeton. No assurance can be given that any forecast, projection or prediction regarding economies or financial markets will be realized.
Endnotes
- Source: “Carbon Robotics built an AI model that detects and identifies plants.” TechCrunch. February 2, 2026.
- Source: “Weed Impacts on Crop Yields.” Weed Science Society of America. As of 2022.
- Source: “Sana's HIP Technology Brings Us One Step Closer to a Type 1 Diabetes Cure.” Beyond Type 1. January 8, 2025.
- Sources: “Sana's HIP Technology Brings Us One Step Closer to a Type 1 Diabetes Cure.” Beyond Type 1. January 8, 2025. “People with type 1 diabetes (all age groups).” International Diabetes Federation. 2024.
- Source: “Tiny, Injectable Pacemaker Runs on Light and then Dissolves.” Scientific American. April 2, 2025.
- Source: “About Congenital Heart Defects.” CDC. February 6, 2026.
- Source: “World’s first subsea desalination plant set to launch in 2026.” Interesting Engineering. December 31, 2025.
- Sources: “World’s first subsea desalination plant set to launch in 2026.” Interesting Engineering. December 31, 2025. “SDG Report 2025 - Goal 6: Clean water and sanitation.” United Nations Statistics Division. 2025.
- Source: “The Future of Investigations: How Flock’s New AI-Powered Tools Are Transforming Vehicular Evidence.” Flock. February 14, 2025.
- Source: “10% of Reported Crime in the U.S. Is Solved Using Flock Technology.” Flock. February 14, 2024.
- Sources: “The Future of Investigations: How Flock’s New AI-Powered Tools Are Transforming Vehicular Evidence.” Flock. February 14, 2025. “UCR Summary of Reported Crimes in the Nation, 2024.” Federal Bureau of Investigation Crime Data Explorer. August 2025.
INVESTMENT POTENTIAL AND RISKS
There are also risks in investing in this or any asset class. The initial potential of any asset class may not carry over to any specific company or the entire asset class chosen for investment, over any investment time period. Any of the investment assumptions may never come to fruition. Investors should be prepared for potential losses as well as the possibility of investment gains. Ideas, products, companies or entire asset classes with positive past performance are not indicative of future results.
WHAT ARE THE RISKS?
All investments involve risks, including possible loss of principal.
Equity securities are subject to price fluctuation and possible loss of principal.
International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
Investments in fast-growing industries like the technology and health care sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments.
Companies in the infrastructure industry may be subject to a variety of factors, including high interest costs, high degrees of leverage, effects of economic slowdowns, increased competition, and impact resulting from government and regulatory policies and practices.
Any companies and/or case studies referenced herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised by Franklin Templeton. The information provided is not a recommendation or individual investment advice for any particular security, strategy, or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio. Past performance does not guarantee future results.
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