How to Survive and Thrive as AI Compounds America’s Wealth Chasm

The robber barons of the 19th century built their fortunes on steel and oil. Today’s digital dynasties are built on something far more potent: artificial intelligence – a technology that doesn’t just create wealth. It compounds it at speeds that would make even Carnegie and Rockefeller dizzy.

Just 50 years ago, a factory worker and a company executive might have seen their fortunes rise and fall together. But now, as AI drives productivity gains that would have once seemed impossible – sending AI stocks to the moon – gains are flowing almost exclusively upward…

As the Institute for Policy Studies’ Inequality.org points out: “America’s top 1 percent…holds more than half the national wealth invested in stocks and mutual funds. Most of the wealth of Americans in the bottom 90 percent comes from their homes – the asset category that took the biggest hit during the Great Recession.”

That means that the monster runs we’ve seen in AI stocks are contributing to a wealth chasm that makes previous economic inequalities look quaint by comparison.

In fact, between March 18, 2020 and December 3, 2024, the combined wealth of America’s top 12 billionaires increased by more than $1.3 trillion – a nearly 200% rise.

Who’s in that cohort? Elon Musk, Jeff Bezos, Mark Zuckerberg, Jensen Huang, Rob and Jim Walton… Some of the biggest proponents of AI and the buildout of an autonomous future.

In other words, AI is creating fortunes at warp speed. And for some, it’s multiplying them. 

But if you’re feeling left behind, perhaps fearful for your financial future in this new technological era, all hope is not lost…

AI Redraws the Market Map

Of course, we understand why you’d feel that way. The Age of AI hasn’t lifted all boats but has instead changed the playing field (though, it certainly hasn’t been leveled).

Since ChatGPT’s breakout debut in late 2022, the S&P 500 has fractured. Certain sectors have surged ahead, supercharged by AI’s rocket fuel. Yet, ‘safe stocks’ – like consumer staples, healthcare, and utilities – have barely moved.

To get a sense of this, let’s take a closer look at the impact of AI in each of the sectors surging ahead:

Information Technology:

• Tech companies are heavily investing in AI and building the infrastructure for it; chipmakers like Nvidia (NVDA) and Google’s parent company, Alphabet (GOOGL), are at the forefront here.
• Firms in this sector are using AI to develop new products, manage data, and bolster cybersecurity.

Communication Services:

• AI is used to optimize networks, manage traffic in real-time, and enhance customer service with personalized interactions and chatbots.

Financials:

• AI analyzes transactions in real-time to flag fraudulent activity at a much faster pace than human auditors. 
• Algorithmic systems execute trades at optimal times based on analysis of large data sets

Industrials:

• We’re witnessing the rise of ‘smart factories,’ where AI is improving efficiency, increasing safety, and paving the way for lower labor costs.
  • Increasingly, AI-powered collaborative robots, or ‘cobots,’ work alongside human employees, taking on repetitive or physically demanding tasks

As a result, the companies within these sectors have been much more likely to enjoy significant stock gains.

The reason is simple: AI creates exponential gains where it can cut costs, automate labor, and open new revenue streams…