Artificial Intelligence (AI) is here – and is likely here to stay. It’s changing how we live, work, and do business. From helping us find the fastest route home to powering chatbots and automating routine tasks, AI is becoming increasingly visible in our daily lives.
But what does this mean for our jobs, our skills, and the way we work? Where are the new opportunities—and what should we be aware of as this technology continues to grow?
In this article, we explore how AI is changing the world and how this shift can offer an opportunity for investors.
Why AI is not just hype
A decade ago, AI was considered the technology of the future. But in just a few years, it’s become omnipresent in our lives. It’s popularity and increased adoption stems from the following:
- It saves time and money by doing repetitive tasks automatically.
- It helps people make better decisions using large amounts of data.
- It works 24x7, without breaks or human fatigue.
- It learns and improves over time, making it more useful with continued use.
While AI is not replacing humans completely, it’s certainly changing how we work and what skills are needed to stay relevant.
Also Read: Impact of Technology on Mutual Fund Investments
Key use cases across sectors
The following are some key uses of AI across major sectors in India:
- Banking and finance: AI can be used to detect fraud, approve loans faster, and help customers with chatbots.
- Healthcare: AI can help doctors by reading X-rays, predicting diseases, and managing hospital records efficiently.
- IT and software: AI helps write code, test software automatically, and if used effectively, can help improve cybersecurity.
- Agriculture: AI is used for predicting crop diseases, weather forecasts, and giving advice to farmers through mobile apps.
In each of these areas, AI is making tasks faster and less expensive.
The impact of AI on jobs: Automation vs. augmentation
A concern among many is about the impact of AI in the professional realm and whether it will take away human jobs. The answer is still unfolding. While some jobs have changed, some may be subsumed by AI, but new roles will also likely be created. Here are some ways in which AI is changing how we work.
- Automation: Machines are performing tasks that humans spend a lot of time on. For example, data entry or factory line work.
- Augmentation: Humans can use AI to do their jobs more efficiently. For example, a doctor using AI to spot cancer in a scan.
The real shift is the changing nature of jobs. As it stands, AI can automate or augment current jobs, but AI systems are not fully autonomous or infallible. Their accuracy and fairness depend heavily on the data and design behind them. This is why human discretion is needed to interpret and validate AI outputs, especially in fields such as finance and healthcare.
Rise of new job roles and skill demand
As AI grows, many new jobs that didn’t exist a few years ago are coming up. These include:
- AI model trainers
- Data analysts
- Prompt engineers
- AI ethicists
- Cybersecurity specialists
Non-technical roles will also need to understand AI basics. Skills in communication, creativity, problem-solving, and adaptability may be more valuable. For those worried about AI and the future of work, the key is to keep learning and stay flexible.
Investing in the AI value chain
AI is one of several broader structural transformations reshaping economies and societies—what we call megatrends. These long-term shifts, such as digital transformation, demographic change, and sustainability, can drive fundamental changes in consumer behaviour, regulation, and innovation.
For investors, megatrends offer a potential opportunity. By aligning their portfolios with these powerful themes early on, investors can potentially benefit from this exposure to trends that are expected to play out over time, away from the noise of short-term market movements.
However, investors should remain wary of buying shares in just one or a handful of companies. The AI value chain is wide, and it can be explored via:
- Hardware companies that make chips and servers for AI.
- Software firms building AI tools and platforms.
- Data providers that supply clean, useful data to train AI.
- Sectors adopting AI like healthcare, banking, and agriculture.
Investors can also look at funds focused on technology and innovation. Some companies are already strong in AI use, while others are just starting. The key is to spot long-term winners.
Also Read: Understanding megatrends for mutual fund investments
Navigating opportunities as an investor
The AI wave is evident. It is changing the way we work, live, and invest. AI is more than just robots and machines. It’s about people working differently, and new roles emerging. While some jobs may be phased out, many others may be created. The impact of AI on jobs depends on how we prepare.
By understanding AI use cases in India, following AI investing trends, and learning about the AI value chain, investors can make informed choices.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.
The content herein has been prepared on the basis of publicly available information believed to be reliable. However, Bajaj Finserv Asset Management Ltd. does not guarantee the accuracy of such information, assure its completeness or warrant such information will not be changed.The tax information (if any) in this article is based on current laws and is subject to change. Please consult a tax professional or refer to the latest regulations for up-to-date information.
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