The Robots Are Coming and Bringing Investment Opportunity

Amid significant advancements in the realms of artificial intelligence (AI) and robotics, there’s plenty of related investment ebullience. But there are also widespread fears that those technologies will send millions of workers searching for new jobs.

Under any circumstances, job loss is negative, and the specter of it via AI and robotics could prompt some investors to apply skepticism to ETFs like the VanEck Robotics ETF (IBOT). In what could be good news for the fund, the jobs reality of AI/robotics is arguably more gentle than current perceptions.

Indeed, many disruptive technologies have histories of displacing some workers, but not necessarily replacing them outright. In fact, as innovative technologies mature and usage cases increase, it’s common to see more jobs created than lost.

Investigating IBOT’s Jobs Impact

IBOT, which turned a year old last month and follows the BlueStar Robotics Index, is home to an array of companies that help clients and end users of their products bolster productivity. In theory, that sounds like a potential jobs killer, but the reality is more encouraging.

“The creation of new jobs often correlates with heightened productivity. Businesses adopting new technologies work more efficiently, increasing worker output,” noted VanEck product analyst Drew Anderson. “This productivity surge can drive company expansion, resulting in more job opportunities. Additionally, increased efficiency may lower prices, stimulating consumer spending and further job creation across various sectors.”