Veteran investor Madhu Kela has said a big thing about Artificial Intelligence. He said that as far as Indian investors are concerned, in the coming years, the theme of the stock markets will not be those companies that create artificial intelligence, but those that use it smartly. He said that the use of Artificial Intelligence (AI) will bring a big change in the cost structure of companies in all sectors and their ability to earn profits will increase.
AI will be used in many fields in the next 3-4 years
Madhusudan Banana Director of MK Ventures. He said that in the next three to four years, AI is going to be used in everything from financials to drug discovery and SaaS. He said, “I have been studying this thing very closely. I have found that the companies making chips or AI models are not going to benefit the most from this. AI is going to bring dramatic benefits in scale and operation in the next three-four years.”
A new time is beginning with AI
Kela said that a new era of Internet like the 2000s could begin. He said, “If I had told you in 2000 about the ‘Internet’ that it would create $25 trillion of value, you would not have believed it. Google, Facebook, everything has come out of this Internet. The same is going to happen with AI. This is not a bubble that will pass. It is here to stay.”
Those who use AI smartly benefit more
Director of MK Ventures said that the biggest benefit of AI will not necessarily be to those companies that make AI hardware and software, but to those traditional companies that will use AI to increase margins. These will especially include big banks like HDFCI Bank and ICICI Bank. They are going to benefit a lot from the use of AI in the next 3 years. This will significantly reduce their cost-to-income ratio and increase productivity.
Those companies that wait will miss the opportunity.
He said that this opportunity is related to a particular company and not to the entire sector. He said, “The first category will be of those companies which are progressive and will be active in its use. The second category will be of those companies which would like to wait for change. For those in the second category, there will be a Kodak moment i.e. they will not get a chance again.”
Banana company itself is using AI
Kela told that his own company has started using AI. AI is being used to prepare the company’s research report in just 13 minutes. In this the accuracy of the analyst is coming to 80-90 percent. He said, “Analysts will not lose their jobs due to this. They will only need to hone these skills. With the help of AI, a person can become an expert in any sector. Those who will use it smartly will benefit the most.”