Investors are worried about artificial intelligence’s impact on the stock market. Goldman Sachs analysts think two key factors can help gauge companies’ exposure to disruption.
First, if a company has high labor costs compared to its revenue and does work that can be automated, it might be at risk of being disrupted by AI. This includes industries like software and professional services, which have seen their stocks drop recently.
Second, the need for physical assets could slow down AI-powered disruptions. Companies with more assets have actually seen their shares improve recently.
However, there’s a catch: other factors, such as regulatory protections and market power, also play a role in determining AI disruption risk. For now, public-market investors seem to be focusing on one side of the equation.
Source: https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-02-25-2026/card/two-ways-of-measuring-ai-risk-according-to-goldman-sachs-eAcdnoY6uAG3sBSYwzIv