Healthcare, Biotech and Pharma Gain Appeal as AI Reshapes Economy

Artificial intelligence could disrupt software, advertising and e-commerce, while healthcare, biotechnology and pharmaceuticals may provide portfolio diversification as the digital economy changes.

The potential shift could affect the digital economy in much the same way the internet reshaped the physical economy. That creates opportunities for companies tied to AI adoption while increasing pressure on businesses whose models depend on existing digital workflows.

Semiconductors and cloud computing are positioned to benefit from the AI buildout, while technology companies face pressure from AI capital expenditures.

Healthcare, biotechnology and pharmaceuticals offer a different mix. The sectors can benefit from AI applications while providing defensive balance as AI disrupts software and other digital industries.

The overlap between computing investment and healthcare is also expanding, as shown by growing healthcare AI adoption. That combination gives the sectors both offensive and defensive roles as the AI buildout reshapes markets.