Reality Is Biting for Businesses at Risk from the AI Boom
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The launch event for Ant Group's AI healthcare app AQ in 2025. Which businesses are being threatened by AI?
Photographer: VCG/VCGAI giveth, and AI taketh away from some. Recent days have seen shares of wealth-management stocks, software makers and insurance brokerages hit by fears that artificial intelligence will eat their business. Because Wall Street’s new trade is dumping any stock in AI’s crosshairs.
The latest selloff erupted on Tuesday when a tax-strategy tool rolled out by a little-known startup, Altruist, sent shares of Charles Schwab, Raymond James Financial and LPL Financial Holdings down by 7% or more. It was the most recent example of a sell-first, ask-questions-later mentality that has rapidly taken hold as new products emerge from the hundreds of billions of dollars poured into AI, sowing anxiety about how the technology may upend entire industries.