Artificial intelligence (AI) isn't just another tech buzzword—it's shaping up to be the most transformative force since the rise of the internet. If you're using Google, interacting with customer service chatbots, shopping with Coles online, or scrolling Instagram, chances are you're already engaging with AI-powered systems. That raises an important question: If AI is embedded in your daily life, shouldn't it also have a place in your investment portfolio?
AI: From Silicon Valley to your supermarket
This isn't just hype. The world's biggest companies are making AI a strategic priority and backing it with serious dollars.
Microsoft (NASDAQ: MSFT) revealed capital expenditure will exceed US$30 billion on AI in the next fiscal year, with a major portion going toward AI infrastructure. Meta Platforms (NASDAQ: META) is going even bigger, forecasting over US$60 billion alone to power its AI ambitions.
Most of that capex is going into data centres, server farms, and specialised chips essential for training and running large AI models. Google parent Alphabet (NASDAQ: GOOG) made it plain: its spending is "primarily" focused on supporting AI workloads.
These aren't one-off bets. This is long-term infrastructure, signalling that AI is not just a feature, but the foundation of what comes next.
And it's not just US tech giants. Right here in Australia, businesses from Coles Group Ltd (ASX: COL) to Pro Medicus Ltd (ASX: PME) are incorporating AI tools to improve operations, from customer experience in stores to medical imaging in hospitals. Governments, too, are investing in national AI strategies, recognising the competitive and economic stakes.
Why investors can't afford to ignore this
History tells us that missing a foundational technology shift—like the internet in the 1990s or smartphones in the 2010s—can mean missing out on the lion's share of market gains over the following decade. AI appears to be one of those rare shifts.
AI isn't just creating new winners; it's redefining entire industries. Healthcare, finance, logistics, media, defence, and even agriculture are being reshaped by predictive algorithms and natural language processing. With productivity and automation at stake, adoption is accelerating.
The risk, then, may not be in investing in AI but in being left behind.
How to gain exposure without picking winners
Of course, investing in cutting-edge tech companies comes with risk. Not every AI-focused business will succeed. That's why many investors choose a diversified approach through exchange-traded funds (ETFs).
ETFs such as:
- BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)
- Global X Artificial Intelligence ETF (ASX: GXAI)
- Global X FANG+ ETF (ASX: FANG) – which includes heavyweights like Microsoft and Nvidia (NASDAQ: NVDA)
…allow investors to back the AI trend while spreading risk across a basket of global leaders.
These ETFs offer exposure to companies at the forefront of machine learning, automation, data analytics, and robotics—without having to bet on just one winner.
Foolish Thoughts
The AI boom may just be getting started. While no one can predict the future, we do know this: the businesses investing in AI today are shaping tomorrow's economy. For long-term investors, participating in that transformation — thoughtfully and with diversification — might just be one of the smartest moves of the decade.
The post Position your portfolio for the AI decade appeared first on The Motley Fool Australia.
The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Meta Platforms, and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Alphabet, Meta Platforms, Microsoft, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025