The artificial intelligence sector continues to drive significant market discussions, with experts like James Iuorio from TJM Institutional Services noting AI's role in changing job markets and increasing volatility. Similarly, Jason Katz, a managing director at UBS, acknowledges recent market selloffs linked to AI concerns but maintains a positive outlook, believing AI will enhance rather than eliminate jobs across industries. These discussions highlight a widespread apprehension about AI's disruptive potential, which has now spread beyond software firms to impact wealth management, commercial real estate, and logistics.
Investment trends reflect this evolving landscape. South Korean investors, for instance, have channeled US$92.5 million into Hong Kong-listed AI and semiconductor stocks by mid-February 2026, signaling a shift away from US assets. Goldman Sachs projects AI could boost company earnings by 2.5 percent annually, potentially attracting over US$200 billion in new investments to Chinese stocks. BlackRock experts Oscar Pulido and Jay Jacobs also emphasize AI as a major force influencing national security, energy, and infrastructure, estimating the AI opportunity alone to be worth $10 to $15 trillion.
Meanwhile, specific AI companies are making notable moves. Anthropic is expanding its AI operations in India, with co-founder Dario Amodei opening an office in Bangalore to capitalize on India's strong AI adoption and explore applications in local languages for education, legal, and farming. Anthropic's India revenue has doubled in four months, despite its new AI tools contributing to a recent global stock market dip. In another development, ElevenLabs, an $11 billion voice cloning AI startup, sets ambitious sales targets, requiring representatives to achieve $2 million in sales for a $100,000 base salary, a quota over 80 percent of its team reportedly meets.
However, the AI boom also presents challenges and warnings. TipRanks AI downgraded Alibaba stock to neutral, citing heavy spending on AI and cloud initiatives that led to a 204 percent drop in free cash flow and weakened profitability. Furthermore, many companies investing heavily in digital tools, including AI-powered analytics, often find these investments fail to create the expected value. Investors are also cautioned against making risky, concentrated AI investments in retirement savings plans like RRSPs, with advice to opt for broadly diversified funds that already include exposure to large global AI companies.
Key Takeaways
- AI is causing market volatility and widespread disruption fears across various industries, including software, wealth management, commercial real estate, and logistics.
- Experts like UBS's Jason Katz believe AI will improve jobs rather than eliminate them, despite concerns about job displacement.
- South Korean investors committed US$92.5 million to Hong Kong-listed AI and semiconductor stocks by February 2026, shifting investments from US assets.
- Goldman Sachs projects AI could increase company earnings by 2.5 percent annually and attract over US$200 billion in new investments to Chinese stocks.
- BlackRock identifies AI as a "mega force" impacting national security, energy, and infrastructure, estimating the AI opportunity at $10 to $15 trillion.
- Anthropic is expanding its AI operations in India, opening an office in Bangalore and seeing its India revenue double in four months, focusing on safe AI and enterprise sales.
- ElevenLabs, an $11 billion voice cloning AI startup, demands high sales quotas, requiring representatives to achieve $2 million in sales for a $100,000 base salary.
- Alibaba's stock rating was downgraded by TipRanks AI due to heavy spending on AI and cloud initiatives, resulting in a 204 percent drop in free cash flow.
- Many digital investments, including AI-powered analytics, often fail to generate the expected value for companies.
- Investors are advised against risky, concentrated AI investments in retirement savings plans, with diversified funds recommended for safer exposure.
Expert discusses AI impact on jobs and market shifts
James Iuorio from TJM Institutional Services appeared on 'Mornings with Maria'. He discussed how AI is changing jobs and causing market volatility. Iuorio also talked about the recent rise in gold prices and the drop in cryptocurrency values.
UBS expert discusses AI market selloff and job impact
Jason Katz, a managing director at UBS, appeared on 'Varney & Co.'. He discussed the recent market selloff caused by AI concerns. Katz believes that artificial intelligence will improve jobs rather than eliminate them.
Korean investors boost Hong Kong AI tech stocks with 92 million
South Korean investors bought US$92.5 million in Hong Kong-listed AI and semiconductor stocks by February 13, 2026. This shows a new interest in Hong Kong's market, especially in new technology companies and ETFs. Goldman Sachs believes AI will increase company earnings by 2.5 percent each year and Chinese stocks could get over US$200 billion in new investments. Investors are moving away from US assets due to a weaker US dollar and concerns about large US tech companies' AI spending. Wang Yi from CSOP Asset Management noted this shift from US "Magnificent Seven" stocks.
AI analyst lowers Alibaba stock rating before earnings
TipRanks AI downgraded Alibaba stock, BABA, to neutral before its Q3 earnings report. The AI analyst cited weak cash flow trends and mixed technical signals as reasons. Heavy spending on AI and cloud initiatives also weighed on the rating. While Alibaba has a strong balance sheet and growing cloud division, its free cash flow dropped 204 percent due to AI and quick-commerce expansion. Profitability also weakened, with adjusted EBITA down 78 percent and GAAP net income down 53 percent.
AI disruption fears spread across industries this week
Markets face a holiday-shortened week after President's Day, with growing fears about AI disruption. These concerns have spread from software companies to wealth management, commercial real estate, and logistics firms. This broad market volatility suggests AI's impact will be more widespread than first expected. Investors will also watch for key economic data on Friday, including Q4 GDP revision and the December Core PCE Price Index. Wednesday's FOMC meeting minutes will provide insights into Federal Reserve policy.
BlackRock experts discuss AI defense infrastructure investing
Oscar Pulido and Jay Jacobs from BlackRock discussed thematic investing for 2026 on The Bid podcast. They explained that artificial intelligence is now a major force, impacting national security, energy, and infrastructure. Defense spending and global infrastructure needs are also growing rapidly. These powerful trends, called mega forces, are changing how markets work and led to record investments in thematic ETFs last year. The AI opportunity alone is estimated to be worth $10 to $15 trillion.
Anthropic expands AI presence in India with new office
Anthropic is growing its artificial intelligence efforts in India, with co-founder Dario Amodei noting India's strong adoption of AI. Amodei opened an office in Bangalore on Monday and is attending the India AI Impact summit. Anthropic's new AI tools, which automate corporate tasks, recently contributed to a global stock market drop, affecting India's IT services sector. Despite this, Amodei sees exciting uses for AI in Indian languages for education, legal, and farming. Founded in 2021, Anthropic focuses on safe AI development and enterprise sales, and its India revenue has doubled in four months.
Digital investments with AI often fail to create value
Companies are investing a lot in digital tools like AI-powered analytics hubs and CRM systems. These investments are mostly focused on commercial areas to help with growth and customer relations. However, these digital investments are not always creating the value that companies expect.
ElevenLabs AI startup demands high sales quotas
ElevenLabs, an $11 billion voice cloning AI startup, has very strict sales goals for its employees. Carles Reina, the VP of sales, stated that sales representatives must bring in 20 times their base salary. For instance, a person earning $100,000 must achieve $2 million in sales. Reina noted that over 80 percent of their sales team successfully meets this demanding quota. The company also rewards both account executives and customer success managers for increasing sales within the first year.
Avoid risky AI investments in your retirement savings
The article advises against making risky investments in artificial intelligence within Registered Retirement Savings Plans, or RRSPs. While AI is a major new technology, it is very hard to pick the few companies that will succeed, much like past railway and dot-com booms. If an investment in an RRSP fails, that contribution room is permanently lost. Instead, the author suggests using broadly diversified mutual funds and ETFs. These funds already include exposure to AI through large global companies, helping to protect retirement savings.
Sources
- AI-driven efficiency raises questions about labor market weakness
- AI wildfire sparks market selloff as investors weigh what comes next
- Korean investors pour US$92.5 million into Hong Kong AI, tech stocks
- AI Analyst Downgrades Alibaba Stock (BABA) Ahead of Q3 Earnings
- AI Disruption Fear, FOMS and Other Key Things to Watch this Week
- Thematic Investing In 2026: AI, Defense, Infrastructure, And The Next Phase Of Market Transformation
- Anthropic Boosts India AI Push Via Flag Airline, Cognizant Pacts
- Why Your Digital Investments Aren’t Creating Value
- $11B AI startup ElevenLabs sets 'ruthless' sales quotas
- Valle: RRSPs aren't the best place to make risky bets on AI
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