The artificial intelligence (AI) revolution has been a significant driver of recent market performance, propelling the S&P 500 to new highs. While investor enthusiasm has been focused on chipmakers, cloud infrastructure providers, and software companies the transformative power of AI extends far beyond well-known players like Nvidia, Microsoft and Alphabet. In this article, we will explore three key thematic areas where AI's widespread integration is generating significant opportunities for long-term growth.

As AI becomes increasingly embedded in every aspect of our daily lives, attractive opportunities are emerging among less obvious, indirect beneficiaries that are well-positioned for long-term growth. That’s good news for investors concerned about a potential AI bubble and how long such high valuations for tech companies can be sustained.

For long-term investors aiming to capitalize on this profound technological shift, a strategic investment approach that considers broader, more enduring themes is crucial. Rather than pursuing short-term gains that may have already peaked, understanding AI's pervasive trickle-down effect across the global economy may allow investors to participate in this powerful momentum in a more diversified way.

The rapid buildout of AI infrastructure is transforming the energy and resource landscape. As US mega-cap companies like Meta, Amazon, Alphabet, and Microsoft commit hundreds of billions of dollars to AI infrastructure, the demand for data centres and the electricity required to power them has reached unprecedented levels. For perspective, a single ChatGPT query consumes roughly the same amount of electricity as a lightbulb running for 20 minutes. As models continue to grow in size and complexity, their power requirements are set to climb even higher.

This surge in demand is spurring a major shift toward cleaner, more sustainable energy solutions. Nuclear and renewable resources are proving to be particularly attractive for meeting the industry's energy intensive needs given their low carbon nature. Recent contracts for new nuclear facilities, along with a global resurgence in appetite for nuclear power, point to significant investment over the next five years that could meaningfully expand the world’s electricity supply. McKinsey estimates that global data centre infrastructure investment will approach $7 trillion by 2030, projecting that US facilities alone could consume nearly 11.7% of the nation’s electricity.¹

Beyond energy, the AI supply chain is also amplifying the need for essential resources. Semiconductor production illustrates this challenge as it is among the most water-intensive industrial processes, with a single facility consuming around 38 million litres per day.² Meeting this demand requires significant investment in water treatment and infrastructure. Furthermore, the specialized hardware powering AI and the sophisticated cooling systems required to prevent overheating depend heavily on rare earth elements. This reliance is creating opportunities for companies involved in the extraction, processing, and recycling of these essential materials.

As AI becomes more deeply woven into the global economy, its continued progress is directly linked to our ability to innovate in energy, water, and materials management. For investors, this opens a broad set of long-term investment opportunities.

AI-powered applications are opening the door to new privacy risks. In 2024, the average number of weekly cyberattacks rose by 75% year over year globally.³ AI itself is proving to be a double edged sword—the same AI fueling innovation and growth is also powering more dangerous and complex cyberattacks. A recent survey found that 85% of cybersecurity leaders reported attacks powered by AI⁴, with the most common tactics including convincing phishing schemes and the use of deepfakes to impersonate executives or employees. As a result, organizations are being forced to increase cybersecurity spending, making it one of the fastest growing areas of capital investment.

Cybersecurity is unique within the technology sector because it behaves differently from most AI-driven growth companies. Protection against cyber threats is not discretionary—it’s essential in an economy that is becoming increasingly reliant on these technologies. This steady demand makes cybersecurity more resilient through market cycles and a valuable diversifier for portfolios that may otherwise be concentrated in higher volatility tech names. Every dollar invested in AI brings a greater need to secure it, placing cybersecurity at the centre of its growth story.

Health care is emerging as one of the most immediate beneficiaries of AI adoption. By integrating into medical imaging and life science tools, AI is reshaping diagnostics across the full continuum of care—from preventive screenings to diagnosis and treatment. For example, cancer screenings that rely on radiology can now leverage AI to process results faster and with greater accuracy, leading to earlier detection and improved patient outcomes. AI-supported mammography alone has improved detection rates by 17.6%⁵, demonstrating superior performance over traditional methods. In practice, AI can also handle repetitive tasks for radiologists, reducing administrative burdens and freeing up physicians to focus on complex cases and patient care.

The urgency of this transformation is reinforced by real time shifts in demographics. As populations age, chronic diseases are becoming more prevalent and increasingly costly. In Canada, seniors accounted for 45% of total provincial health care expenditures in 2020, despite representing just 18% of the population.⁶ Globally, chronic conditions are responsible for 75% of all deaths and drive the majority of health care spending.⁷ This mounting burden is straining already stretched health care systems and making AI-powered solutions a necessity in addressing these pressures.

A 2024 study of 800 clinicians, nurses, IT professionals, and executive leaders at health systems found 86 per cent of respondents are already leveraging AI in their medical organizations.⁸ As populations age and health care demand continues to rise, AI offers a way to make care more efficient, reduce costs, and improve patient outcomes. This represents a durable long-term theme within the AI revolution. Health care is not a passing trend, but a sector positioned to remain essential and resilient for decades to come.