Artificial intelligence, or AI, is no longer something from the future. It is already here and swiftly changing the way many industries work. From healthcare to farming, AI is helping improve speed, efficiency, and in some cases, affordability. For investors, this shift can open up interesting possibilities
Let’s take a look at how AI is changing different industries, why it matters, and where this growth is headed. Whether you are a new investor or simply curious, it’s useful to understand how AI is reshaping the world around us.
AI is helping businesses work faster and smarter
One of the biggest advantages of AI is that it helps companies do more in less time. AI systems can learn from data, make decisions, and even improve themselves over time.
- In retail, AI is used to understand what customers want and offer better products.
- In banking, AI can detect fraud within seconds.
- In factories, machines with AI can fix problems before they break down.
According to the McKinsey Global Institute, AI could add up to $13 trillion to the global economy by 2030, potentially making it an important growth driver in the coming years.
Healthcare is becoming smarter with AI
AI is playing a growing role in healthcare. According to PwC, AI in healthcare could save billions of dollars worldwide by reducing errors and improving efficiency.
- AI can analyse X-rays and scans much faster than humans.
- It helps track patient health records and suggest treatments.
- Some apps now use AI to help people talk to doctors or get medical advice online.
For example, some advanced AI systems can help predict diseases like diabetes and heart problems by examining a person’s medical history. This can lead to earlier intervention and potentially better outcomes, though much depends on the quality of data and medical oversight.
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Financial services are changing quickly
Banks, insurance, fintech, and other aspects of the financial world are seeing big changes due to AI.
- Chatbots now answer customer questions 24/7.
- AI can study spending habits and suggest better ways to save or invest.
- Insurance companies use AI to settle claims faster and more accurately.
Digital banks are using AI to make financial services available to more people, even in small towns or villages. The World Bank has noted how digital financial services have helped millions of people in India access formal financial tools in less than a decade. This suggests a shift towards greater financial inclusion, which may support broader economic participation in the long term.
Manufacturing is becoming automated and efficient
AI is also changing how products are made. Smart machines are now helping factories become more efficient. This means faster production, fewer delays, and better use of resources.
- AI-powered robots are used for assembling, packing, and even quality checks.
- Predictive maintenance systems tell when a machine might fail before it actually does.
- AI helps reduce waste by finding better ways to use materials.
According to McKinsey & Company, India could gain up to $1.2 trillion from trade-flow shifts by 2030, potentially increasing its manufacturing GDP share from 16% to 25%. While AI-driven automation is one of the contributing factors, this projection is based on a range of economic drivers.
Agriculture is becoming high-tech
Even farming, which has been done the same way for centuries, is now being improved by AI.
- AI can analyse weather patterns and suggest the best time to plant crops.
- Drones and sensors can check soil health and crop growth.
- Smart irrigation systems use AI to give an optimal amount of water, thereby reducing wastage.
This has the potential to improve yields, reduce costs, and encourage more sustainable use of natural resources. Start-ups in this space are growing quickly, and many investors are beginning to see “agri-tech” as an emerging theme.
AI is creating new job roles and investment opportunities
While some fear that AI may replace jobs, it’s also creating many new ones. For example:
- Data analysts and AI engineers are in high demand.
- Businesses need people who can work with AI tools.
- New companies are being started just to build AI-powered products.
- AI is also making education more accessible. Online learning platforms are using AI to give personalised lessons to students, helping them learn at their own pace.
For investors, this can offer potential opportunities not just in companies that use AI, but also those that build AI tools. These can include:
- Software companies creating AI platforms.
- Start-ups building AI for health, education, or farming.
- Hardware companies making chips and devices that run AI systems.
According to projections, the global AI software market's annual revenue is expected to reach approximately $126 billion by 2025, reflecting the possibility of strong demand across various sectors.
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A few things to keep in mind
While AI is changing the way many industries work, it’s not without its challenges. Adoption can vary widely depending on the sector, region, or regulation. Not every AI tool ends up being useful or commercially successful, and there are still questions around data privacy, fairness, and responsible use.
In areas like healthcare and finance, these concerns become even more important. It’s may also be prudent to look at how companies manage their AI practices—whether they follow ethical guidelines, handle data responsibly, and stay compliant with emerging regulations.
So, while potential opportunities are on the rise, it’s important to also stay mindful of the risks, do your research, and take a long-term view when exploring AI as an investment theme. Investing in AI via mutual funds can be one such way to add an additional layer of analysis and filtration to the stock selection process. Mutual fund portfolios are handled by investment professionals, who pick securities after thorough research and consideration.
Conclusion
AI is more than just a passing trend. It is becoming a part of how businesses operate, how services are delivered, and how decisions are made. For investors, understanding how AI is evolving—and the risks and opportunities it presents—can offer useful insights into where industries may be heading.
Industries that adopt AI thoughtfully may be able to improve operations, optimise costs, and remain competitive in a rapidly changing environment. So, whether you're looking at healthcare, fintech, education, or farming, AI is a trend that you may follow closely – as a global citizen and as an investor.
At Bajaj Finserv Asset Management Ltd, we aim to harness the power of megatrends by offering investors access to themes shaping the world’s future — from clean energy to technology, innovation, demographic shifts and more. Many of our funds follow a megatrends investment approach to help you participate in these long-term shifts, with a focus on growth potential and diversification. Build your future-focussed portfolio with Bajaj Finserv AMC.
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