The impact of artificial intelligence on U.S. financial markets is obvious. Nvidia has become the world's most valuable company with a market capitalization of nearly $4.5 trillion. Startups ranging from OpenAI to Anthropic have raised tens of billions of dollars in funding. But investors are increasingly concerned about the negative impact of this new technology: it may disrupt some industries, just like the Internet did back then. And investors have begun betting on which industries such disruption will occur, selling shares of companies that strategists expect will face falling demand as artificial intelligence applications become more common.
Affected companies include web development company Wix.com, digital imaging company Shutterstock and software manufacturer Adobe. These three companies are among the 26 companies most vulnerable to the impact of artificial intelligence in the eyes of Bank of America strategists. Since the advent of ChatGPT in late 2022, these 26 companies have generally performed in line with the broader market, but since mid-May this year, this group has underperformed the S&P 500 by about 22 percentage points.
"This disruption is real," said Daniel Newman, CEO of Futurum Group. "We thought it would happen in five years, but now it looks like it may only take two years. Businesses that are service-focused and have large headcounts will be extremely vulnerable today, even if they had a strong business during the previous wave of technology."
So far, few companies have shut down due to the widespread use of chatbots and so-called "agents" that can write software code, answer complex questions, and generate photos and videos. But as technology giants such as Microsoft and Meta Platforms invest hundreds of billions of dollars in artificial intelligence, investors have begun to take a more defensive stance.
Wix.com and Shutterstock have each fallen at least 33% so far in 2025, while the S&P 500 has gained 8.6% over the same period. Adobe fell 23% on concerns that its customers may turn to artificial intelligence platforms that can generate images and videos, such as Coca-Cola Co., which has experimented with an AI-generated ad. The share price of ManpowerGroup Group, which provides human resources services, has fallen 30% this year, while the market value of its peer Robert Half has shrunk by more than half, and its share price has fallen to the lowest point in more than five years. The recruitment services provided by these two companies may be affected by increased automation.
As artificial intelligence changes the way people get information from the Internet and even the way universities operate, investor sentiment is changing too. Even companies like Microsoft at the forefront of AI technology are cutting jobs to increase productivity and make room for more AI investments. For many tech industry observers, the moment is approaching when the ubiquity of artificial intelligence will drive companies out of business.
Throughout history, there are many examples of new technologies destroying entire industries. The telegraph was replaced by the telephone, horsewhips and horse-drawn carriages were replaced by automobiles, and Netflix’s elimination of Blockbuster reflects the subversive nature of the Internet.
“There are many areas in the market that may be completely destroyed by artificial intelligence, or at least the entire industry will face great disruption, causing related companies to become irrelevant,” said Adam Sarhan, CEO of 50 Park Investments. “Any company whose business can be completed faster and at a lower cost by artificial intelligence will be eliminated. Such as graphic design, administrative work, and data analysis.”
Of course, there are also many companies that were originally thought to be severely impacted by artificial intelligence and are still performing strongly today. While many AI companies offer instant translation services, language-learning app developer Duolingo saw its stock surge after it raised its 2025 sales forecast, in part because it has effectively integrated AI into its strategy. The stock has nearly doubled in the past year, although concerns remain about the threat posed by the next generation of artificial intelligence.
Phil Fersht, CEO of HFS Research, said that as more companies face the risks posed by artificial intelligence, this will become an increasing investment theme.
"Wall Street is clearly getting nervous," Fersht said. "This is going to be a tough and unforgiving market."