AI’s Yawning Technochasm: How to Level the Playing Field
AI technology is exacerbating the wealth gap, creating new challenges for investors. To navigate this disruption, it is essential to understand how to protect and grow wealth in this evolving landscape. InvestorPlace highlights the importance of adapting to the changes brought on by AI advancements. By staying informed and proactive, investors can level the playing field and make strategic decisions in this new era of disruption. Understanding the impact of AI on the market can help investors make more informed decisions about preserving their wealth.
The Impact of AI on the Workforce
A software engineer with two decades of mastery, Sarah was the backbone of her company — until her firm traded network infrastructure for AI-driven systems. Now, in her 40s, she’s reskilling from scratch, piecing together a fractured work life while execs toast a stock surge. Her story is foreboding, as tech layoffs continue to spike and investment in artificial intelligence continues to surge.
The Divide: Winners and Losers in the AI Era
Then there’s Jay. A Midwest coder with no fancy degree, he tinkered in his garage with free AI tools in 2023. By 2024, he’d built a marketing automation gem that landed him a multimillion-dollar VC check. No corporate ladder, no Silicon Valley ZIP code — just a guy who saw the wave coming and surfed it to the top. Reports from the IMF (International Monetary Fund) reveal that in countries where 60% of jobs are exposed to AI (like the U.S. and the U.K.), there’s a rough split between those who benefit from AI and those who are at its mercy. Some high-skilled workers are leveraging AI to command higher salaries, while lower-skilled workers are increasingly being displaced by AI.
The Evolution of AI in Business
The tech world is splitting in two. The question is: Which side of the chasm are you on? On one side, execs pop Champagne as AI turbocharges stocks and mints new fortunes. On the other, workers like Sarah watch their careers vaporize overnight, replaced by algorithms they don’t understand. The rules of work and wealth are being rewritten, and most people are still playing the old game. Five years ago, Eric Fry, Louis Navellier, and myself, spotted this tectonic shift ripping through the economy. We dubbed it the “Technochasm” ... and we warned it would split the world into winners and losers. What we didn’t fully grasp then? Artificial intelligence would pour jet fuel on this divide, turning a chasm into an abyss — overnight.
The Future of AI: From Brute Force to Intelligent Application
The AI boom started with brute force — big data, bigger budgets, and chipmakers like Nvidia ( NVDA ) cashing in as data centers sprouted like weeds. This worked ... for a while. That’s why, starting in late 2022, Louis Navellier, Eric Fry, and I first focused on the “picks and shovels” of the AI Revolution — the hardware companies, like Nvidia, that built the infrastructure on which artificial intelligence stands today. These “AI Builders” saw their stocks soar as data centers expanded across the country. In hindsight, we nailed that phase. But we’ve now entered a new, more sophisticated phase of the AI Revolution.
The Rise of Physical AI
Buckle up. If you think the AI Revolution has been disruptive so far, it’s about to leap off of your screen and into your living room. We’re now entering what I call the “Physical AI” era, where artificial intelligence breaks out of the digital realm and enters our physical world through robots, autonomous vehicles, and smart cities. This stuff isn’t just sci-fi. A lot of it’s already here. In fact, every major tech company is jumping into humanoid robotics. Alphabet Inc.’s ( GOOGL ) DeepMind recently rolled out Gemini Robotics , a vision-language-action (VLA) AI model that extends Gemini 2.0 to include physical actions. Nvidia just launched Cosmos, an AI system designed specifically for humanoid robots.
Opportunities in the AI Revolution
Most investors focus on high-profile AI model developers, like OpenAI and xAI . Forget about these companies. While these firms make headlines with their billionaire feuds and breakthrough announcements, the smart cash is chasing AI Appliers — companies rewiring old industries with AI. These “Appliers” will be the true beneficiaries of the Technochasm: Web companies are using AI-powered platforms to attract millions of customers by automating website creation. Retailers are using AI to create personalized shopping experiences and optimize their logistics networks. Cybersecurity firms are using AI to detect threats in real-time across their networks of clients.
This train’s moving — fast. That’s why tomorrow, March 27, at 10 a.m. Eastern, I’m joining my fellow InvestorPlace Senior Analysts Louis Navellier and Eric Fry to share a groundbreaking AI announcement that could make or break investors moving forward. During that broadcast, Eric, Louis, and I will show you the three critical steps you must take now to stay on the right side of the Technochasm. We’ll also explain how a trillion-dollar flood of money could soon surge into AI, thanks to moves by President Donald Trump. Further, we’ll spotlight some of the stocks poised to dominate this AI-driven divide... and show you how to get on board before the gap grows too wide to cross.