AI evolution decoded: Ace investor Vijay Kedia explains it with a simple house-building analogy

How do you explain something as complex as artificial intelligence in the simplest way possible? Veteran stock market investor Vijay Kedia builds house with a familiar idea.

Start with the foundation. Imagine having access to an expert you can ask anything about home building. From design and materials to costs and timelines, every question is answered. Today LLM is the same, tools like ChatGPT, Gemini or Perplexity that inform, guide and facilitate.

But the journey doesn’t stop at answers. Next comes the “agentic” phase. The expert no longer just gives advice, he begins to act. He can sketch basic designs, estimate costs, and even help schedule work. It moves from knowing to doing.

The system then evolves further into a “multi-agent” setup. It is no longer a specialist, but a team, an architect, an engineer, a contractor, all working together, each responsible for a different part of the same house. Coordination replaces individual effort. Collaboration makes progress.

And then comes AGI. Imagine one person who can do it all, design, plan, as a complete human expert who doesn’t need a team. One mind, full capacity. Finally, at the very top, sits super intelligence. Not just better but beyond. A mind that can predict future needs, optimize every decision instantly, eliminate mistakes before they happen, and build in ways humans can’t even imagine.

From responding to doing, from doing to collaborating, from collaborating to mastering and then something much further. Or as Cadia simply puts it: First you learn, then you earn, and then you grow.

Ace investor Vijay Kedia’s portfolio delivered a largely muted performance in FY26, with most of his prominent holdings ending the year in the red amid a challenging market environment. Domestic equities remained under pressure for most of the year due to tariff-related concerns, weak earnings growth, high valuations and continued foreign institutional outflows. Sentiment soured later in the year amid the escalating Iran-Israel/US conflict, which pushed up energy prices, fueled inflation worries and pushed back expectations of a US Fed rate cut.

Most of the stocks in the portfolio ended the year in the red, reflecting broader tensions in the mid- and small-cap segments. The worst affected were Tech Infosec and Affordable Robotics, both sinking more than 68%, followed by innovators Facade (-47%), Global Vectra (-45%) and Patel Engineering (-43%). Several other stocks including Siyaram Silk Mills (-33%), Om Infra (-30%) and Sudarshan Chemical (-25%) also registered significant losses.

(disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. (These do not represent the views of The Economic Times)