Companies perceived to be most vulnerable to disruption from artificial intelligence are underperforming in the stock market. Since mid-May, a basket of such companies has trailed the S&P 500 index by approximately 22 percentage points. This decline reflects investor concerns about AI's potential to reshape various sectors.
Firms like Wix.com and Shutterstock have experienced significant share drops, with declines of at least 33% this year. Adobe's shares have also fallen, down 23%, due to worries that clients may opt for AI platforms capable of generating images and videos. Service-based businesses with large workforces are particularly susceptible, even those that thrived in previous tech eras.
This trend highlights the real and growing impact of AI on established business models. Investors are increasingly wary of companies that may struggle to adapt to the rise of AI-powered alternatives. Companies must adapt to integrate AI effectively or risk further market devaluation.
