‘AI was a monster’: Kumar Mangalam Birla reveals strategy behind investing in artificial intelligence
Billionaire Kumar Mangalam Birla says global crises are making investment decisions harder for his group. Businesses must keep growing while dealing with uncertainty and new opportunities, he said. Birla spoke at the 2026 Bloomberg New Economy Forum in New Delhi on 13 October.
However, according to the Aditya Birla Group chairman, companies cannot remain still. They must invest in existing operations and new businesses to sustain growth.
“You can’t stop growing. You either grow, or you go down; you can’t stay in a state of equilibrium. We’ve been constantly investing as well in our existing and in new businesses because you can’t stop growing,” he said.
Unpredictable US tariffs, changing trade policies and the Middle East war have increased uncertainty. Demand is also shifting across major economies and business sectors. Birla said significant global events were likely to affect some part of his organisation.
Artificial intelligence presents another investment challenge, Birla said. The group plans to invest more gradually than it expected a year ago.
"A year ago, we probably thought that AI was a monster sitting there on the last row. And, it would eat me up by the time it got here if I didn't know everything about AI," he said.
Decisions should depend on potential returns, rather than fear of missing out (FOMO). Birla said companies were moving beyond competing mainly for computing resources and skilled workers.
"I think that we're going to take it a little more gradually than we thought a year ago, because it is a large investment,” he added.
AI applications will differ across the group's businesses. Some could improve customer interactions while others could make manufacturing more efficient.
Financial services could use AI to improve lending margins. Its effect on productivity across an entire organisation is still being assessed.
Birla compared the current excitement around AI with earlier interest in blockchain. His group uses blockchain in its fibre business to track textile supply chains. Scanning labels allows consumers and garment manufacturers to trace the origins of garment materials.
The Mumbai-based group operates in 41 countries across six continents and more than 20 sectors. It employs over 2.27 lakh people and has more than 600 manufacturing units. Its annual revenue reached around $72 billion in FY26. As of June, overseas markets contributed 42% of its sales.
Its businesses include Hindalco Industries, UltraTech Cement, Aditya Birla Capital. It also owns Aditya Birla Fashion and Retail. The group is also entering newer markets while expanding established operations.
These include paints through Birla Opus and building materials through the Birla Pivot marketplace. It sells jewellery through Indriya under Novel Jewels and has launched Ultravolt electric cables. The group also bought Shell's renewable energy assets for $1.8 billion.
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