How AI Could Wreck Your 401(k)

ByWilliam Baldwin,

Senior Contributor.

A

rtificial intelligence: boom, bubble or bust? Probably a mix of all three. Whatever comes of it, it increases investment risk. It suggests that a lot of retirees and near-retirees need to rethink their portfolios.

The problem is not just that much of the stock market’s exuberant valuation hangs on data centers, via companies like Amazon, Meta Platforms and Nvidia. It’s that AI might prove to be so powerful that it destabilizes a large fraction of the economy. After that: unemployment, recession, market crash. Maybe.