Last week, the CEO of Ford Motor Co. (NYSE: F) made a bold prediction about the impact of artificial intelligence on white-collar workers.
Jim Farley, the Chief Executive Officer (CEO) of Ford since 2020, delivered remarks about artificial intelligence at the Aspen Ideas Festival.
Farley predicted that artificial intelligence could wipe out up to 50% of all white-collar jobs.
Farley has become the latest high-profile executive to sound the alarm on how artificial intelligence advancements could impact the workforce.
Last month, Amazon CEO Andy Jassy echoed a similar tone. He suggested the corporate workforce is likely to reduce thematically in the coming years. In a memo to employees, Jassy wrote:
We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs…It's hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.
Artificial intelligence is developing at a rapid pace.
According to Grand View Research, the global artificial intelligence market was valued at US$279 billion in 2024. It is expected to grow at a compound annual growth rate of 36% between 2025 to 2030.
Grand View Research suggests, "The continuous research and innovation directed by tech giants are driving the adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing."
Those in administrative roles are becoming increasingly concerned about being 'automated out' of their roles due to AI developments. However, with humanoid robotics gaining traction, other industries could be under threat, too.
While these developments threaten job security for many workers, they open a whole spectrum of opportunities for investors.
To get ahead of the curve, investors should carefully consider artificial intelligence related opportunities. That is, companies that are likely to grow profit as a result of AI advancements.
The most obvious stock pick is US-listed Nvidia Corp (NASDAQ: NVDA). Nvidia has been at the forefront of the AI revolution over the past few years, designing and manufacturing graphics processing units (GPUs).
However, beyond Nvidia and the other technology giants, there are opportunities in other sectors.
For example, US listed Hims & Hers Health Inc. (NYSE: HIMS) is leveraging AI solutions with the goal of becoming the "Apple of healthcare". In May, the company appointed Mo Elshenawy to lead AI integration across diagnosis, treatment, and delivery.
Of course, if investors want diversified exposure to AI-related stocks but don't want to pick a winner, the Global X Artificial Intelligence ETF (ASX: GXAI) is an option. For a management expense of 0.57%, the GXAI ETF invests in 85 companies that stand to benefit from the development and use of AI.
In the local market, ASX-listed NextDC Ltd (ASX: NXT), Australia's leading independent data centre operator, could be well-positioned to benefit from AI adoption.As reported by The Motley Fool's James Mickeboro, broker Morgans currently has a buy rating and $18.80 price target on its shares.
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