AI ‘Roadkill’ Fears Haunt Traders Two Years After ChatGPT Debut

Two years after the release of ChatGPT, fears about AI disrupting industries have not materialized as dramatically as some investors anticipated, though uncertainty remains high. Adobe’s disappointing revenue forecast reignited concerns about its vulnerability to AI competitors like OpenAI and Runway AI, with its shares experiencing their worst month in over two years.

While some companies struggle with AI's impact, others have thrived. Duolingo, for example, has embraced AI to lower costs and expand offerings, driving its stock up over 50% this year. Internet services companies like GoDaddy (+93%) and Wix (+80%) have also performed well. Conversely, Chegg has lost over 90% of its value since 2022 due to generative AI competition, and Yelp’s stock has dropped 20% amidst concerns about long-term AI risks.

Market trends show that companies slow to adopt AI may face challenges in the long run, while those making significant AI investments—such as Microsoft and Accenture—could benefit. However, the full impact of AI on markets and the economy is still unfolding, with long-term winners and losers yet to be clearly identified. Analysts recommend diversification and a focus on larger companies with the resources to invest heavily in AI.

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