Riddhiman Jain, Managing Director of Waterfield Advisors, said that artificial intelligence remains a secular, “structural” force driving transformation across industries, meaning its impact is likely to be long-lasting rather than cyclical. He highlighted that productivity enhancements, automation, and data-driven decision-making propelled by AI reflect deep shifts in business models rather than short-term market trends — making it a core theme for long-term investors.
Jain also noted that while AI’s potential is significant, investors should be cautious because returns and valuations within the AI ecosystem vary sharply. Pure-play AI stocks are limited on Indian exchanges, and foundational innovation is concentrated in markets like the United States, so Indian investors may need to use global platforms, ETFs, or professionally managed funds to capture this theme effectively.
He stressed that data centres are another compelling long-term theme as AI adoption grows; increased compute and storage demands will support continued investment in digital infrastructure, even if listed opportunities in India are currently limited. Jain also said that broader market recovery and earnings improvement — such as sequential profit growth in corporate India — could help sustain market momentum alongside secular themes like AI.
On investment strategy, Jain urged diversification — including exposure to REITs and InvITs and a global allocation to hedge against currency depreciation and geographic risk — rather than concentrating solely on AI-related plays, since valuations and opportunities vary significantly across markets and sectors.
