When we think about investing in AI, we usually tend to think about companies like Google that own DeepMind, or companies like Microsoft that have a stake in OpenAI. We think about Nvidia as a hardware player.
It's fine to invest in these companies, because if AI takes off huge, they'll all reap tremendous rewards, but what about the companies that will use these new AI tools to eliminate huge swaths of their payroll? I think we should concentrate on companies that can continue to do everything that their business model is aligned to do, just with 70 percent less human employees. The gigantic cost savings will start showing up in their surprising earnings beats, and the valuations for these companies will start to accelerate.
So, which industry uses thousands of human workers to process forms and documents, that won't need any of these workers anymore once AI has completely automated their process? The first industry that popped into my mind is Insurance. Should we look for insurance companies with the largest number of current workers likely to be phased out?
Look, I know this is depressing, but what else are we going to do? If we're all going to have our jobs replaced, might as well get rich investing in these companies on the way out. I don't want to come across as a vulture that's just following a group of travelers in the Sahara desert, just waiting for them to drop dead so they can feast, but it is…. what it is.
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