Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.
This article is featured in the Q1 2026 Future Strategist newsletter, you can read the rest of the newsletter here.
Many white-collar workers feel uneasy right now. The software they once used as tools now acts more like a co-worker, and sometimes even a rival. News stories warn of major job losses across law, finance, consulting, media and technology. It’s no wonder people are anxious.
But history points to a different result. When something essentially becomes much cheaper, demand usually rises. For over a century, automation has transformed economies, yet jobs and incomes have grown. Jevons Paradox explains why: as things get more efficient and cheaper, we use more, not less. AI, by lowering the cost of intelligence, is poised to create new jobs and industries, just as past technologies have done.
This pattern has repeated throughout history. From the arrival of textile machines in the 1800s to Ford's assembly line and the spread of computers, each wave of automation made products cheaper and more accessible. Instead of shrinking the workforce, new industries and job categories emerged, and demand for goods and services soared.
AI operates on the same principle, but at a broader scale. It reduces the cost of drafting, analysing, coding and customer engagement. A small business owner can now design marketing campaigns, build a website and manage customer enquiries without hiring outside specialists. Tasks that once required consultants or agencies can now be done internally at far lower cost. This is Jevons Paradox in real time. When the cost of intelligence falls, its use spreads. Because AI is ultimately software, falling code and deployment costs mean more applications are built, more processes are automated and more intelligence is embedded into everyday business activity.
When things get cheaper, more people want them. A service that used to be affordable for 10,000 customers can now reach 100,000. Companies respond by doing more business. Even if some tasks are automated, the total workload increases. For example, an accounting firm that can process tax returns faster doesn’t just stick with its current clients – it takes on more small businesses. A radiology practice using AI to review scans more quickly doesn’t close departments; it reads more scans and helps more patients.
Platforms like Shopify now include AI tools, making it easier for more entrepreneurs to start and grow businesses. As more companies are created, the need for logistics, payments and customer support also grows. The amount of work increases. Early data already show that jobs needing AI skills often pay more in many developed countries.
Experienced professionals gain leverage from AI, making decisions faster and at scale, whilst their responsibility and judgment become even more valuable. In law, an experienced attorney can use AI to rapidly review thousands of documents and identify relevant cases. But it’s still the lawyer’s expertise that crafts arguments, understands client needs and makes strategic decisions in court. AI does the heavy lifting, but real value comes from human insight and judgement.
The real story about jobs is growth. When building and launching products becomes cheaper, more people try, leading to new businesses and more jobs. Lower barriers to entrepreneurship and expansion, which fuels job creation across industries.
The biggest changes will happen in entry-level jobs. Tasks that used to help people learn on the job are now being automated. Junior analysts and developers can’t depend on repetitive work anymore. This shift might feel tough at first, but it changes how people gain experience. For example, a new analyst might use AI to create a first draft, then spend more time checking assumptions and explaining risks. A junior developer might review AI-generated code and fix any problems. The learning process moves from doing the same thing over and over to evaluating and improving. Work gets done faster, but good judgment is still up to people.
Disruption is nothing new. ATMs, e-commerce and automation all changed the nature of work, but each also opened doors to new industries and roles. Technology transforms the tasks we do, but it never limits our ability to adapt and thrive.
Some worry AI might replace jobs faster than new ones appear. This risk is real, but history shows that as key inputs get cheaper, new uses and industries arise, usually faster than old jobs disappear. The real question is when will the biggest growth and opportunities emerge.
AI isn’t some outside force taking over the economy – it is software. Like past software revolutions, it drives efficiencies and unlocks new opportunities for growth. While disruption is inevitable, history shows that automation creates more jobs than it destroys. The challenge ahead is not job losses but adapting to new ways of working and ensuring people are ready to take on new roles.
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KEY RISKS
Past performance does not predict future returns. You may get back less than you originally invested.
We recommend this fund is held long term (minimum period of 5 years). We recommend that you hold this fund as part of a diversified portfolio of investments.
The Funds managed by the Global Equities Team:
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May hold overseas investments that may carry a higher currency risk. They are valued by reference to their local currency which may move up or down when compared to the currency of a Fund.
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May encounter liquidity constraints from time to time. The spread between the price you buy and sell shares will reflect the less liquid nature of the underlying holdings.
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May invest in smaller companies and may invest a small proportion (less than 10%) of the Fund in unlisted securities. There may be liquidity constraints in these securities from time to time, i.e. in certain circumstances, the fund may not be able to sell a position for full value or at all in the short term. This may affect performance and could cause the fund to defer or suspend redemptions of its shares.
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May have a concentrated portfolio, i.e. hold a limited number of investments or have significant sector or factor exposures. If one of these investments or sectors / factors fall in value this can have a greater impact on the Fund's value than if it held a larger number of investments across a more diversified portfolio.
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May invest in emerging markets which carries a higher risk than investment in more developed countries. This may result in higher volatility and larger drops in the value of a fund over the short term.
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Certain countries have a higher risk of the imposition of financial and economic sanctions on them which may have a significant economic impact on any company operating, or based, in these countries and their ability to trade as normal. Any such sanctions may cause the value of the investments in the fund to fall significantly and may result in liquidity issues which could prevent the fund from meeting redemptions.
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May invest in companies predominantly in a single country which maybe subject to greater political, social and economic risks which could result in greater volatility than investments in more broadly diversified funds.
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May hold Bonds. Bonds are affected by changes in interest rates and their value and the income they generate can rise or fall as a result; The creditworthiness of a bond issuer may also affect that bond's value. Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may have difficulty in paying their debts. The value of a bond would be significantly affected if the issuer either refused to pay or was unable to pay.
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May, in certain circumstances, invest in derivatives but it is not intended that their use will materially affect volatility. Derivatives are used to protect against currencies, credit and interest rate moves or for investment purposes. The use of derivatives may create leverage or gearing resulting in potentially greater volatility or fluctuations in the net asset value of the Fund. A relatively small movement in the value of a derivative's underlying investment may have a larger impact, positive or negative, on the value of a fund than if the underlying investment was held instead.
The risks detailed above are reflective of the full range of Funds managed by the Global Equities Team and not all of the risks listed are applicable to each individual Fund. For the risks associated with an individual Fund, please refer to its Key Investor Information Document (KIID)/PRIIP KID.
The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.
DISCLAIMER
This material is issued by Liontrust Investment Partners LLP (2 Savoy Court, London WC2R 0EZ), authorised and regulated in the UK by the Financial Conduct Authority (FRN 518552) to undertake regulated investment business.
It should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Examples of stocks are provided for general information only to demonstrate our investment philosophy. The investment being promoted is for units in a fund, not directly in the underlying assets.
This information and analysis is believed to be accurate at the time of publication, but is subject to change without notice. Whilst care has been taken in compiling the content, no representation or warranty is given, whether express or implied, by Liontrust as to its accuracy or completeness, including for external sources (which may have been used) which have not been verified.
This is a marketing communication. Before making an investment, you should read the relevant Prospectus and the Key Investor Information Document (KIID) and/or PRIIP/KID, which provide full product details including investment charges and risks. These documents can be obtained, free of charge, from www.liontrust.com or direct from Liontrust. If you are not a professional investor please consult a regulated financial adviser regarding the suitability of such an investment for you and your personal circumstances.
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