The Contradiction at the Heart of the AI Selloff
The stock market turmoil unleashed by AI reflects two distinct theories. Both can’t be right.
There’s a contradiction at the center of how Wall Street has been talking about artificial intelligence.
On one side, there’s the view that AI will dramatically change the economy. (That’s been the driving force behind the punishing selloffs across a number of industries, like real estate services, wealth management, insurance and logistics.)
On the other side, there’s still a lot of hand-wringing that Big Tech is in an AI bubble. (Microsoft and Amazon shares have been hammered this year by investors worried about them spending billions on more AI development.)
“Those two things can’t be true at the same time,” said Julia Wang of Nomura International Wealth Management.