Client Portal
Key Takeaways
- AI adoption is spreading well beyond the technology sector, with companies across industries exploring how the technology can improve innovation, productivity and efficiency.
- While American companies have led much of AI’s development, adoption is increasingly global, with several international and emerging markets putting the technology to work at a faster pace.
- The benefits of AI may look different than many expected. Companies report gains in innovation and employee and customer satisfaction, while cost savings have been more limited so far.
Artificial intelligence may have started as a Big Tech story, but it’s quickly becoming something much bigger. ChatGPT and other AI tools have experienced extraordinary growth in just a few years. As of December 2025, ChatGPT had approximately 900 million weekly users, representing about 10% of the world’s adult population, according to a study cited in the report.
For investors, though, the bigger story may be where adoption goes next. If AI is going to live up to its transformational potential, the technology will need to move beyond the companies developing chips, cloud infrastructure and AI models and into the businesses actually putting those tools to work.
The AI Conversation Is Getting Bigger
AI has generated plenty of excitement, but also plenty of uncertainty, particularly when it comes to jobs. A Gallup survey found that 61% of Americans believe AI will eliminate more jobs than it creates. Interestingly, most Americans surveyed also believe the technology will increase productivity and economic growth.
Those ideas don’t necessarily contradict each other. AI could reduce the need for certain types of jobs while creating opportunities elsewhere. For workers, that could make flexibility increasingly important, including updating existing skills, learning new ones and remaining open to roles in high-growth areas.
Moving Beyond the Tech Sector
Investors have already rewarded many of the companies at the forefront of the AI race, particularly major cloud-service providers and chipmakers. But for AI to have the transformational impact many expect, adoption will need to spread much further across the economy.
That process appears to be underway. During the one-year period ending in the third quarter of 2025, the percentage of companies mentioning AI on earnings calls increased across every S&P 500 sector except Utilities. Some of the largest increases came from non-tech sectors, including Financials, Industrials and Materials.
Investors appear to be paying attention, too. From June 30 through December 5, 2025, S&P 500 companies that mentioned AI on third-quarter earnings calls experienced an average price increase of 8.1%, compared with 3.9% for companies that didn’t mention AI. Patent activity also points to broader adoption, with transportation, telecommunications, manufacturing, and life and medical sciences among the industries leading AI-related patent applications.
Manufacturing is one area where expectations are particularly high. A Deloitte survey of 600 executives from leading manufacturing companies found that 85% believe “smart manufacturing,” which combines automation, data analytics, sensors and cloud computing, will improve areas such as competitive advantage, agility and just-in-time production.
AI Goes Global
The United States has been at the forefront of developing AI, but it hasn’t necessarily led when it comes to putting the technology to use. In one worldwide survey of engineers and executives, 55% of U.S. respondents said their companies had been using AI for less than a year. By comparison, more than half of respondents in China and Japan said their companies had been using AI for at least three years.
Individual usage tells a similar story. According to a Microsoft study cited in the report, the United States ranked 24th globally for individual AI use, behind countries including Poland and Taiwan.
Emerging markets have also shown considerable enthusiasm for the technology. South Korea, for example, has set out to become an AI leader through coordinated regulation, training programs and financial incentives designed to help small and midsized businesses adopt AI. The country has also become the world’s second-largest paid market for ChatGPT, behind the United States.
For investors, that broadening adoption could be important. The companies and markets that ultimately benefit from AI may extend well beyond the U.S. technology sector.
The Benefits May Look Different Than Expected
Much of the early conversation around AI focused on efficiency and cost savings, but companies are finding benefits in other areas as well. According to a McKinsey & Company survey cited in the report, 64% of firms using AI reported greater innovation, while employee and customer satisfaction were each cited by 45% of companies.
AI may help employees complete routine tasks more efficiently, freeing up time to focus on more meaningful work and potentially improving work-life balance. Cost savings, meanwhile, haven’t been quite as significant as some might expect. Only 38% of companies surveyed reported savings from AI. Businesses may still be figuring out how to integrate the technology and where it can create the most meaningful value.
Looking Beyond the AI Bubble Debate
With AI-related stocks attracting significant investor attention, much of the conversation has centered on whether the market is experiencing an AI bubble. It’s a valid question, but focusing only on valuations may miss the bigger picture.
As adoption expands, investors may have more opportunities to gain exposure to companies, industries and markets that stand to benefit over the long term. What happens within one highly valued corner of the stock market may ultimately be less important than the broader changes taking place across the economy.
Past technological revolutions offer an interesting comparison. From railroads in the 19th century to the dot-com boom more than a century later, it wasn’t always clear which companies building the infrastructure would ultimately succeed. What became clearer over time was how dramatically those technologies changed the businesses and industries around them.
Beyond Big Tech
AI’s next chapter may be less about the handful of companies that first captured investors’ attention and more about how the technology spreads across the global economy. Financial companies, manufacturers, healthcare businesses and companies outside the United States are already finding ways to incorporate AI into how they operate.
For investors, that means the AI story may be much bigger than Big Tech. As adoption spreads across industries and borders, opportunities may emerge in places receiving far less attention today.
Looking to get in touch with one of our advisors? Call 770-777-0427
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Advisor Services Holdings C, Inc., dlb/a Kestra Holdings, and its subsidiaries, including, but not limited to, Kestra Advisory Services, LLC, Kestra Investment Services, LLC, Kestra Private Wealth Services, and Bluespring Wealth Partners, LLC. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by any entity for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
Kestra Advisor Services Holdings C, Inc., dlb/a Kestra Holdings, and its subsidiaries, including, but not limited to, Kestra Advisory Services, LLC, Kestra Investment Services, LLC, Kestra Private Wealth Services, and 8/uespring Wealth Partners, LLC, do not offer tax or legal advice.
