We recently published a list of Tariff Hits and More: 10 AI Stocks in the Spotlight. In this article, we are going to take a look at where Amazon.com Inc. (NASDAQ:AMZN) stands against other AI stocks in the spotlight.
The newly announced tariffs by U.S. President Donald Trump could have serious consequences for many stocks. The competitive landscape may also change, leading competitors to potentially gain an edge. In particular, investment firm Bernstein has warned of higher uncertainty and downside risk for semiconductor stocks after the new tariff plan. Even though chips remain safe for now, the firm has said that indirect consequences may be significant.
Besides the tariffs in question, another area of concern in the realm of AI is its future potential impact. Big tech firms may be racing ahead to win the AI arms race, but they are ignoring a major area of concern. According to the U.N. Trade and Development agency, the artificial intelligence industry is poised to reach $4.8 trillion in market value by 2033. However, its benefits are expected to remain highly concentrated.
The UNCTAD report reveals that the AI market cap would roughly equate to the size of Germany’s economy. However, there are significant concerns about automation and job displacement. The report warns that AI could affect 40% of jobs worldwide.
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To make matters worse, it has also revealed that artificial intelligence is not “inclusive,” which means that the benefits and economic gains from the technology tend to be “highly concentrated.”
“The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies.”
UNCTAD isn’t the only organization raising concerns over job displacement and income inequality stemming from the advent of AI. IMF has voiced similar concerns in the past, revealing how it may cause polarization within income brackets. Workers who can harness AI are probably going to witness an increase in their productivity and wages, and those who cannot will fall behind.
The report from the IMF revealed AI may impact 60% of advanced economies. In contrast, AI exposure is anticipated to be an estimated 40% and 26% in emerging markets and low-income economies. Overall, AI is expected to worsen income inequality over time. For this reason, it is important that policymakers address the issue proactively in order to protect the livelihoods of those who are vulnerable.
