Industry rotation driven by artificial intelligence. How to benefit
Artificial Intelligence (AI) is poised to significantly impact various industries and services in the coming years. AI adoption will vary across sectors, and its impact will depend on factors like data availability, regulatory frameworks, and technological advancements. In the following analysis, we examine the industries and services that are poised to experience the most significant impact from the adoption of artificial intelligence between 2025 and 2030. Additionally, we provide insights on how to capitalize on these transformative shifts from an investment perspective.
Industries which will have the most significant impact from AI adoption
Although we believe that all sectors will have to go through artificial intelligence transformation, below we highlight the industries, which might have the highest impact from AI:
Healthcare: AI can enhance diagnostics, personalized treatment, and drug discovery.?It may revolutionize patient care, disease prediction, and medical imaging .
Customer Service and Experience : AI-powered chatbots, virtual assistants, and sentiment analysis tools are transforming customer interactions and service delivery.
Banking, Financial Services, and Insurance (BFSI): AI can optimize fraud detection, credit scoring, algorithmic trading, and customer insights.?It’s reshaping financial processes and risk management.
Logistics: AI-driven route optimization, demand forecasting, and supply chain management can improve efficiency and reduce costs in logistics and transportation.
Retail: AI enables personalized recommendations, inventory management, and demand forecasting.?It enhances customer experiences both online and offline.
Cybersecurity : AI helps detect anomalies, prevent cyber threats, and secure sensitive data.?It’s crucial in safeguarding digital assets.
Transportation: Autonomous vehicles, traffic management, and predictive maintenance rely on AI.?The transportation industry is set for transformation.
Marketing: AI-driven analytics, targeted advertising, and customer segmentation enhance marketing strategies and campaign effectiveness.
Defense: AI applications include autonomous drones, predictive maintenance for military equipment, and cybersecurity.
Lifestyle: AI impacts smart homes, wearable devices, and personalized recommendations in entertainment and leisure.
Which jobs in healthcare industry will be replaced by AI
AI is poised to replace or augment many roles, which we highlight below. However, it is important to note that many healthcare jobs, such as those requiring complex decision-making, human empathy, and direct patient care, are at a much lower risk of replacement. For example, nurses, surgeons, and mental health counselors are unlikely to be fully replaced by AI due to the inherently human aspects of these professions.
Healthcare jobs that will likely be impacted by AI adoption:
Medical Transcriptionists: AI-powered voice recognition and transcription software can perform the tasks of medical transcriptionists more quickly and accurately, reducing the need for human intervention (according to Thoughtful AI ).
Pharmacy Technicians: Automated dispensing systems and AI-driven inventory management can handle many of the repetitive tasks performed by pharmacy technicians.
Medical Billing and Coding Specialists: AI algorithms can automate the coding of medical records and billing processes, improving efficiency and reducing errors (Thoughtful AI ).
Radiologic Technologists: AI can assist in interpreting medical images, potentially reducing the number of technologists needed to perform initial image analysis (Thoughtful AI ).
Laboratory Technologists: AI algorithms can perform complex analyses on patient samples, streamlining diagnostic processes and reducing the need for human technologists (The Health Journals ).
Phlebotomists: Automated blood-drawing devices and AI systems can replace some of the tasks performed by phlebotomists (Thoughtful AI ).
Data Entry Clerks: AI can automate data entry tasks, reducing the reliance on human clerks for maintaining patient records and other administrative tasks.
Which banking & financial services will be replaced by AI
Artificial Intelligence (AI) is poised to significantly transform the investment banking industry by automating several services traditionally managed by humans. Below we highlight some key areas where AI is expected to make significant inroads:
Data Analysis and Financial Modeling: AI can process vast amounts of data more efficiently than humans, making it well-suited for tasks like data analysis and financial modeling. This includes identifying trends, making predictions, and generating financial models, which are essential in activities such as mergers and acquisitions, and investment strategies. In this context, the role of financial / investment / research analysts will be significantly transformed. The role of initial financial model building and analysis will become obsolete due to AI replacement.
Automated Trading and Portfolio Management: AI-driven algorithms can execute trades at high speeds and with precision, which is invaluable for portfolio management. These systems can analyze market conditions and execute trades based on pre-set criteria, significantly reducing the need for human intervention in trading activities. In this context, the role of financial / investment / research analysts will be significantly transformed. Clerical and Secretarial Roles in portfolio management will become obsolete due to AI adoption. Jobs involving routine administrative tasks, data entry, and paperwork may decline due to AI automation.
Customer Service and Advisory: AI chatbots and virtual assistants are increasingly capable of handling customer inquiries, providing investment advice, and managing client relationships. This not only enhances customer experience but also allows human advisors to focus on more complex tasks that require personal judgment and client interaction. The roles of bank tellers and cashiers will become obsolete. Automated banking services, ATMs, and digital payment systems are replacing traditional teller roles.
Risk Management and Compliance: AI can help in identifying and mitigating risks by analyzing large datasets to detect anomalies and potential threats. Additionally, it can streamline compliance processes by automating the monitoring and reporting required by regulatory bodies. Data entry specialists will become obsolete.
Additionally the roles of accountants and bookkeepers will have to be transformed. Basic accounting duties can be performed by specialized AI programs, impacting these professions.
While AI is transforming the role of portfolio managers, it does not necessarily mean that portfolio managers will become obsolete. Here are several reasons why portfolio managers are still needed despite the advancements in AI:
Human Judgment and Experience: AI systems can analyze data and execute trades based on algorithms, but they lack the nuanced understanding and judgment that human portfolio managers possess. Experience in market behavior, economic cycles, and client needs adds a layer of decision-making that AI cannot replicate.
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Client Relationships: Portfolio management is not just about making trades; it also involves building and maintaining relationships with clients. Understanding clients’ unique financial goals, risk tolerance, and preferences requires interpersonal skills and empathy, which AI lacks.
Strategic Decision-Making: While AI can handle routine tasks and provide data-driven insights, strategic decisions often require a broader perspective, creativity, and the ability to consider non-quantifiable factors. Human portfolio managers can integrate qualitative information and market sentiment into their decision-making processes.
Regulatory and Ethical Considerations: Navigating complex regulatory environments and making ethical investment decisions are areas where human oversight is crucial. Portfolio managers ensure compliance with regulations and uphold ethical standards, areas where AI may fall short without human intervention.
Adaptability and Crisis Management: In times of market volatility or financial crises, human portfolio managers can adapt strategies quickly and respond to unforeseen events. Their ability to think critically and react in real-time is essential in managing portfolios during turbulent periods.
Which jobs in Logistics & Transportation industries will become obsolete
AI adoption in the logistics sector is expected to render several jobs obsolete, particularly those involving repetitive and manual tasks. Below we highlight some of the key roles that are likely to be most affected:
Warehouse and Inventory Management: Many manual tasks in warehouses, such as picking, packing, and sorting items, are increasingly being automated. Robots and AI-driven systems can perform these tasks faster and more accurately, reducing the need for human labor in these roles.
Data Entry and Clerical Work: Positions involving data entry and basic clerical tasks are at high risk of becoming obsolete. AI can handle these tasks more efficiently, reducing errors and processing times.
Basic Customer Service Roles: AI chatbots and automated customer service platforms are taking over many basic customer service functions, providing instant responses and handling inquiries without human intervention.
Transportation and Delivery: Autonomous vehicles and drones are beginning to take over delivery and transportation tasks. While this technology is still in the early stages of widespread deployment, it has the potential to significantly reduce the need for human drivers.
Retail industry jobs which will become obsolete due to AI adoption
AI adoption in the retail industry is expected to make several jobs obsolete, especially those involving routine, repetitive tasks:
Cashiers: With the rise of self-checkout systems and cashier-less stores like Amazon Go, the need for human cashiers is decreasing. AI and automated payment systems can handle transactions more efficiently, reducing the demand for this role (according to our research at Spiceworks ).
Inventory Management: AI-driven systems and robots are increasingly being used for inventory management, including tracking stock levels, ordering supplies, and restocking shelves. This reduces the need for human workers in these roles (Nexford University ).
Customer Service Representatives: Automated customer service platforms and AI chatbots are taking over many customer service functions, providing instant responses and handling inquiries without human intervention.
Data Entry Clerks: Positions involving data entry are at high risk as AI can process and analyze data more accurately and quickly than humans, reducing the need for manual data entry (Forbes ).
Stock Clerks: Automated systems and robots can handle stocking and organizing products, which diminishes the demand for human stock clerks.
The evolving jobs which will be in high demand due to AI adoption
Artificial Intelligence (AI) adoption is expected to significantly impact the job market, creating high demand for certain roles while altering or replacing others. In our view there will be the following key job roles that will be in high demand due to AI adoption:
Data Scientists and Data Engineers: As AI relies heavily on vast amounts of data, there will be an increased demand for professionals who can collect, analyze, and interpret this data to inform AI models and business decisions.
Machine Learning Engineers: These professionals design and develop machine learning systems that can analyze data and learn from it. Their role is crucial in creating AI systems that can perform tasks and improve over time without human intervention.
AI Ethics Specialists: With the increasing use of AI, there is a growing need for professionals who can address ethical concerns and ensure that AI systems are developed and used responsibly.
AI Prompt Engineers: These individuals specialize in crafting and optimizing the prompts used to interact with AI models, particularly in natural language processing applications.
Chatbot Developers: As more businesses adopt chatbots to handle customer service and other tasks, there will be a need for developers who can create and maintain these systems.
Generative AI & Multimodal Roles: Jobs focused on generative AI, which involves creating new content such as text, images, or music using AI, are becoming increasingly important. This includes roles like AI artists, content creators, and developers who specialize in generative AI tools. The same refers to the Multimodal AI development.
The most promising industries and sectors which will benefit from AI revolution
Artificial Intelligence (AI) is set to significantly impact several industries, driving substantial growth due to its adoption. Below we highlight some of the key sectors expected to experience the highest growth:
Information Technology (IT): The IT sector is at the forefront of AI adoption. This includes software engineering and data management, where AI is used to enhance cybersecurity measures, optimize IT operations, and develop advanced software solutions. The companies-leaders in this industry will have to be on investment radar.
Healthcare: The healthcare industry stands to benefit immensely from AI, particularly through improvements in medical imaging, diagnostics, personalized medicine, and predictive analytics. AI applications in healthcare can lead to better patient outcomes and more efficient hospital operations. Companies which focus on AI adoption in their operations must be included in investors’ watchlists.
Professional, Scientific, and Technical Services: This sector, which includes activities such as research and development, engineering, and technical consulting, is leveraging AI to drive innovation and improve service delivery. Companies which focus on AI research, development and AI solutions should be included on investors’ radar.
Retail and E-commerce: AI helps retailers personalize shopping experiences, optimize inventory, and enhance customer service through chatbots and recommendation systems. This leads to increased sales and customer satisfaction.
Automotive Driving: AI is at the core of developing fully autonomous vehicles. Machine learning algorithms and computer vision technologies enable cars to perceive their environment, make decisions, and navigate without human intervention. This advancement is expected to reduce accidents, improve traffic flow, and provide mobility solutions for those unable to drive. Companies from automotive driving industry must be included on investors’ watchlist.
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