Investors adapt as AI reshapes US market
Bank of America warns that 26 companies face high AI-related risks, with stock losses far outpacing the wider market.
Firms such as Wix.com, Shutterstock, and Adobe have been labelled high risk by Bank of America, with stock declines far outpacing the broader market. The shift stems from fears that AI will replace services like graphic design and data analysis, delivering them faster and cheaper.
Some analysts say the impact, once expected over five years, may unfold in just two.
The disruption is not limited to creative industries. Gartner saw a record share drop after cutting its revenue forecast, with some attributing the slump to cheaper AI-powered alternatives.
Meanwhile, major tech firms, including Microsoft, Meta, Alphabet, and Amazon, are expected to invest around $350 billion this year, nearly 50% more than last year, to expand AI infrastructure.
Despite the pressure, certain businesses are adapting successfully. Duolingo has doubled its share price over the past year by integrating AI into its language-learning tools, though questions remain over the long-term sustainability of such gains.
As the gap between AI-powered growth and industry decline widens, markets are bracing for further upheaval.
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