How a Non-Tech Person Like Me Is Staying Relevant in the AI Boom Through Investing

Artificial intelligence (AI) is inevitably transforming the world.  From healthcare and finance to transport and national defense, AI is changing how businesses operate and how value is created.  Yet for many of us who are not software engineers, data scientists, or tech experts, this new era can feel overwhelming.

Sometimes I worry: Being non tech-savvy, will I eventually be left behind?  Will AI make me dispensable in the industry I am in?  These are real concerns, especially as AI tools become more integrated into how work gets done.

But here is the perspective I have come to embrace.  I do not have to be an AI developer/ expert to benefit from the AI boom.  I just need to be a smart investor.

Why Investing Is My Strategy

I have accepted the fact that I am unable to build AI solutions.  However, I can invest in companies that do.  By allocating capital to businesses that adopt AI to improve productivity,  use AI to create competitive advantages, and integrate AI into core operations, I can participate in the economic value that AI creates even without writing a single line of code.  This does not make me obsolete, instead, it makes my investments purposeful, relevant and forward-looking.

My Playbook: Investing in AI-Powered Businesses on the SGX

AI companies are easily found in the US stock market, from giants like Alphabet, Microsoft, Nvidia to smaller players like CoreWeave and Palantir.  Although here in Singapore, there are little to none tech giants that directly invest in AI, there are many companies listed on the Singapore Exchange (SGX) that are also using AI in meaningful ways.  These are not fringe tech startups, they are established corporations innovating within their industries.

Below are examples of some of these companies and how they use AI:

1)     DBS Group - AI in Banking and Finance

DBS is Southeast Asia’s largest bank and a clear leader in digital transformation.

DBS uses AI in:

a)     Fraud detection: AI systems analyze transaction patterns to spot suspicious behavior in real time.

b)     Customer service bots: DBS uses AI-powered chatbots to handle customer queries 24/7, reducing wait times and improving service.

c)     Credit underwriting: Machine learning models help DBS assess loan risk more accurately and efficiently.

d)     ALICE (AI/ML platform): DBS has a centralized AI platform called ALICE that scales these models across the bank.  They have publicly stated that AI/ML contributed to over S$370 million in additional revenue and productivity gains in 2023 alone.

Even though I do not build the AI models, I benefit as a shareholder when DBS becomes more efficient and more profitable.  AI helps the bank scale its services without proportionally increasing costs, which is good for shareholders like myself.

2)     ST Engineering - AI in Defense, Aerospace, and Smart Cities

ST Engineering operates in industries where AI can be a huge differentiator.

AI applications include:

a)     Predictive maintenance (MRO): Aircraft and industrial equipment generate massive data.  AI analyzes this data to predict failures before they happen, reducing downtime and maintenance costs, making their service contracts more "sticky".

b)     Autonomous systems: ST Engineering is developing AI-guided drones and robotics for security and surveillance operations.

c)     Smart city solutions: AI is integrated into traffic management systems and public safety analytics (AGIL Ecosystem).

Their AI adoption is not flashy consumer tech.  It is mission-critical industrial and aerospace applications that give ST Engineering a competitive edge.

3)     ComfortDelGro - AI in Transportation and Fleet Optimization

When you think of AI in transport, self-driving cars often come to mind.  But ComfortDelGro is using AI in practical, revenue-enhancing ways today.

AI in ComfortDelGro operations:

a)     Route optimization (Zig App): AI algorithms improve how taxi and transport fleets are deployed based on real-time demand.

b)     Predictive analytics: Better forecasting for peak hours and demand allows the company to allocate drivers more profitably.

c)     Dynamic pricing: Similar to ride-sharing apps, AI can help price services more efficiently.

d)     Autonomous Vehicle (AV) Lab: While they are not building robotaxis yet, they actually have a Joint AV Lab with A*STAR.  They are positioning themselves to be the operator of robotaxi fleets, even if they do not build the cars themselves.

ComfortDelGro is using AI to make existing operations more efficient and profitable.

4)     Riverstone Holdings - AI in Manufacturing and Quality Control

Riverstone Holdings is a manufacturer of nitrile gloves, operating in a highly competitive, cost-sensitive industry.

AI may not be visible to consumers here, but it plays a crucial role behind the scenes.

How AI is relevant to Riverstone’s business:

a)     Automated quality inspection: AI-powered vision systems detect defects faster and more consistently than manual checks.

b)     Process optimisation: Machine learning models improve production efficiency, reduce waste, and stabilise output quality.

c)     Predictive maintenance: AI helps anticipate machinery breakdowns, reducing downtime.

d)     Inventory and demand forecasting: Better alignment between production and customer demand.

e)     A necessity in AI: AI requires chips, and Riverstone manufactures cleanroom gloves that are necessary in the manufacturing of the chips too.

In a manufacturing business, small efficiency gains compound massively over time.  AI becomes a silent competitive advantage.

My Investment Philosophy: Simplicity & Long-Term Focus

Here is how I approach this strategy:

1)     I invest in businesses with proven AI adoption, not hype.

AI is not a buzzword for me.  It is a driver of efficiency and margin growth.  I look for companies where AI is part of how they make money.

2)     I diversify across industries.

AI is not just limited in tech.  It is also incorporated in banking (DBS), aerospace and defense (ST Engineering), transport (ComfortDelGro) and even industrial (Riverstone).  This spreads risk while still giving me exposure to the AI revolution.

3)     I focus on long-term compounding, not short-term trends.

Short-term tech fads come and go, but economic productivity improvements last.  When a company uses AI to lower costs or grow market share, that can translate into real returns over years and decades, which is definitely beneficial to their business.

What This Means for Someone Like Me

I may not be building neural networks or training large language models, and in fact, I am a total noob.  However by investing in companies that are using AI to grow and transform, I am participating in the AI-driven economy, letting capital work for me even if my technical skills are not cutting edge, and staying relevant by aligning my investment dollars with technological progress.

AI does not have to be intimidating.  If I cannot wrap my head around it and incorporate it into my work or livelihood, I will need to let competent people work things out for me in the form of investment.  It just has to be part of my investment strategy.  As long as innovation keeps happening, I do not have to fear being left behind.  I can ride the wave instead with the companies that know how to.  Barista FIRE, here I come...!