If you’ve been hearing about Artificial Intelligence (AI) everywhere lately, you’re not alone. From chatbots to self-driving tractors to banking apps that talk back, AI is taking over fast—and it’s changing the way we do business. But here’s the big question: How can you invest in AI and make money from it?
Let’s break it down together—no tech degree required.
The obvious players (that everyone already knows)
First, let’s start with the famous names. You’ve probably heard of Nvidia, Microsoft, Amazon, Google (Alphabet), and Oracle. These are the big players building the “brains” and infrastructure behind AI — chips, data centers, and software.
These companies have already seen their stock prices rise thanks to AI. They’re still solid investments, but here’s the thing: everyone is watching them. Wall Street analysts cover them daily. So if you’re looking for huge surprises or “hidden gems,” these might not be it—but they’re still good if you want stable exposure to AI’s growth.
The “hidden” winners: companies using AI to get smarter
Want something more exciting (and possibly more profitable)? Look for AI adopters—companies outside the tech world that are using AI to become more efficient, save money, or launch better products.
For example:
- Duolingo uses an AI chatbot to help you learn languages in fun, interactive ways.
- Trane Technologies, which makes air conditioners and heating systems, uses AI to improve energy efficiency and detect problems before they happen.
These companies aren’t selling AI — they’re using AI to get better, faster, and more profitable. That makes them worth watching.
What should you look for?
When looking for strong AI investments, you don’t need to be a tech expert. Just look for signs that a company is doing more with less, like:
- Revenue per employee going up (which means more work is being done with the same team)
- Profit margins improving
- Fewer customer complaints or wait times
- Steady or falling labor costs
- Rising sales without massive hiring sprees
These are clues that AI is helping the business run smarter.
Where should you focus?
Here are some sectors where AI is already making a difference:
1. Banking and finance
Big banks like JPMorgan Chase and Bank of America are using AI for customer service, fraud detection, and data analysis. That saves time and money — and helps profits.
2. Insurance
Companies like Progressive and Allstate use AI to assess risk, speed up claims, and price policies better.
3. Healthcare
AI is helping doctors detect disease earlier and guiding robotic surgeries. Intuitive Surgical is one company using AI in robotic surgery tools to help surgeons work faster and safer.
4. Manufacturing and industry
Think of companies like Deere, which makes farm equipment. They use AI-powered tools to spray weed killer only where it’s needed—saving money and chemicals. Axon Enterprise, which makes Tasers and police cameras, uses AI to write reports and find suspects faster.
5. Broad funds
If you’re not sure where to start, you can invest in broad ETFs or mutual funds that focus on AI or include AI-ready companies, like the Invesco KBW Bank ETF or Defiance’s XMAG ETF, which skips the overhyped tech giants and focuses on other S&P 500 companies.
Read this much later:
Final thoughts: It’s not just tech — It’s everywhere
AI is like the internet in the early 2000s — it’s creeping into every industry, and the companies that use it wisely will come out ahead.
So what’s the best move for you? Start simple. Look for companies that use AI to grow. Track how efficient they are becoming. And remember, it’s not just about the big names — it’s about who’s getting smarter with AI.
The earlier you get in, the more potential there is. So keep your eyes open — your next smart investment might be in a company you’ve never even considered.
