For nearly as long as artificial intelligence (AI) and robotics have been discussed, a significant part of that conversation has revolved around the possibility those disruptive technologies will have negative effects on the job market.
It’s a relevant concern. Morgan Stanley estimates that full AI adoption by S&P 500 member firms could drive $920 billion in long-term economic benefit while creating market capitalization increases of $13 trillion to $16 trillion just for that index. Obviously, that puts a spot light on ETFs such as the Invesco QQQ Trust (QQQ ) and the Invesco NASDAQ 100 ETF (QQQM ) — two AI-heavy funds that count dozens of S&P 500 members among their holdings.
Fortunately for investors, QQQ and QQQM are avenues for capitalizing on AI adoption, but investments in the ETFs doesn’t mean market participants are supporting elimination of jobs. Morgan Stanley’s analysis indicates the opposite could be true. Indeed, broader AI adoption could create better employment opportunities.
AI Could Reshape Work, Not Kill Jobs
Economic history confirms that technology, even in its earliest forms, alters the way people work. True, some innovations led to reduced headcounts in certain industries. However, it doesn’t have to be that way with AI, and it may not be.
“Technological revolutions—from electrification to the internet—have historically reshaped work, altering job types and employment levels. While concerns persist that AI could displace millions of jobs and increase unemployment, history points to the potential for net positive effect on job growth, though that could come with an unprecedented demand for re-skilling,” noted Morgan Stanley.
Agentic AI — the next step in the AI evolution after generative AI, and a theme to which many QQQ/QQQM holdings are levered – could be an example of an AI segment boosting, not destroying job counts.
“Agentic AI is likely to affect a broader range of occupations than the deployment of humanoids. However, that doesn’t mean agentic AI will lead to greater job losses. Instead, it could shift work toward higher-value tasks and create more positions. In contrast, embodied AI, while impacting fewer roles, carries a higher likelihood of automation and displacement,” added Morgan Stanley.
In terms of industries and sectors that could increasingly embrace AI in the essence of efficiencies and increased profitability — points for QQQ/QQQM investors to ponder — Morgan Stanley highlights consumer staples, real estate and transportation. Those are sprawling industries, implying QQQ/QQQM AI enablers have ample runway ahead to grow, help clients do the same and possibly not negatively affect the job market.
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