AI investments must deliver returns, avoid FOMO-driven spending: Kumar Mangalam Birla

Aditya Birla Group Chairman Kumar Mangalam Birla has asserted that investments in artificial intelligence (AI) must be guided by measurable business returns rather than the fear of missing out (FOMO), as companies move away from the race to acquire computing capacity and talent towards assessing the technology’s commercial value.

Speaking at the Bloomberg New Economy Forum 2026 on Tuesday, Birla said the group would adopt a more gradual approach to AI spending than it had envisaged a year ago, given the scale of investment involved.

“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, describing the anxiety surrounding the technology's rapid rise.

AI strategy must vary across businesses

Birla said the benefits of AI would differ across businesses, with potential applications ranging from improving customer interactions and manufacturing efficiency to enhancing net interest margins in financial services. Given the group's diversified operations, he said, a uniform approach would not work across all businesses. The conglomerate is also assessing the technology's impact on productivity across the organisation.

Drawing a parallel with the earlier excitement around blockchain, Birla cited its application in the group's fibre business to improve traceability across the textile supply chain. Consumers and garment manufacturers can scan labels to trace the forests from which the cotton or viscose used in a garment was sourced.

$30 billion investment plan amid global uncertainty

Birla said allocating capital had become increasingly challenging as companies sought to expand existing operations while pursuing new opportunities. Geopolitical developments and changes in global trade conditions have added to the complexity for businesses operating across multiple markets.

“When I read about a significant global event in the newspapers, I can be sure that it will impact us somewhere,” he said.

The group plans to invest around $30 billion over the next two to three years, including increased investments in the United States. Birla underlined the need to keep expanding despite uncertainties, saying, “You can't stop growing...You either grow, or you go down. You can't stay in a state of equilibrium.”

Manufacturing competitiveness remains a priority

Birla said the group's manufacturing businesses aimed to rank among the bottom 10% of global producers on the cost curve. Scale, cost efficiency, stable operations and continuous employee training would remain central to achieving that objective. He also stressed the importance of keeping employees motivated, promoting collaboration and enabling learning across businesses.

The group's cement capacity reached 200 million tonnes this year, making it the largest cement company outside China. It has also added 2 gigawatts (GW) of renewable energy capacity to its cement business.

Operating across more than 20 sectors in 41 countries spanning six continents, the Aditya Birla Group employs over 2.27 lakh people and runs more than 600 manufacturing units. It reported revenue of around $72 billion and earnings before interest, taxes, depreciation and amortisation (EBITDA) of $8.5 billion in FY26.