How To Profit Off the AI Bubble, According to Codie Sanchez
When most people think about profiting from artificial intelligence, they focus on AI stocks. However, small-business expert Codie Sanchez believes the opportunity is even bigger for people who start businesses and offer services around the AI boom.
AI-related services can take off quickly due to the intense amount of capital flowing into the industry. Sanchez outlined some of the ways to profit from AI in a recent video.
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Who's Powering the Data Centers?
Sanchez mentioned early in the video that data centers are projected to consume more energy than entire countries by 2030. Not everyone has the money to start their own utility company, but it is much easier to be a small contractor who specializes in AI data centers.
All data centers need plumbing, roofing, wiring and insulation. They also need HVAC systems, fabs and clean rooms. Blue-collar work can become very lucrative if you specialize in AI data centers. Sanchez says it is this type of unsexy work that makes people rich. She is also an advocate of starting boring businesses that have proven demand instead of chasing a unicorn.
You don't need to have every skill in your toolkit. Sanchez says you should focus on doing one thing very well and maximizing that skill.
Buy Businesses That Are Behind the Boom
Sanchez says that you can make money with an AI-native app, but if it gains traction, big tech companies may try to poach your top workers. Furthermore, the path to a successful AI app has a low probability and can feel like chasing a unicorn.
Sanchez believes it is better to buy small businesses that are set to benefit from the AI infrastructure buildout. HVAC companies and construction firms are two potential opportunities. Some businesses do not know how to fully leverage the opportunity, and you can come in with your expertise and steer the business toward AI-fueled growth.
This approach is risky and requires knowing how to attract customers and boost sales. However, this form of leverage can help savvy entrepreneurs enter the AI race much sooner instead of creating a company from scratch. The one to two years it may take to get established with a new company may be far more expensive than buying an existing company due to opportunity cost.
Leverage AI To Make Money With Your Existing Business
You do not have to create new things to make money with AI. Sanchez suggested using AI tools to optimize business operations and reach new clients. The right tools can significantly cut costs while allowing businesses to reach more people. While most business owners focus on boosting revenue, it can be just as beneficial to reduce expenses.
AI specialists can also work to fix workflows with the help of AI. Solving real problems — such as helping doctors save time with each appointment — can translate into a profitable side hustle that could even turn into a full-time income.
Sanchez believes AI is multiplying opportunities instead of eliminating them. She also views human creativity as a bottleneck. The better questions you ask yourself, the more effective you will be when entering prompts into an AI model.
Artificial intelligence presents many compelling long-term opportunities, but people will likely seize them quickly. Acting now can lead to meaningful revenue growth if you take the right steps and continue learning about the industry every day.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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