How AI Ate the S&P 500 — And What It Means for Investors

There’s a well-known comedian who likes to say, “I don’t know it for a fact, I just know it's true.” Well, if you’ve been thinking as I have that the influence of artificial intelligence (AI) on the S&P 500 Index ($SPX) has become too big to ignore, now you know it's true.

As a recent analysis by Goldman Sachs concluded, AI-linked companies have jumped from just 25% of the index in late 2022 (when ChatGPT launched) to 45% now. Let’s be clear: 45% of the S&P 500 now has its fate tied to AI. The spend, the ROI potential, the spoils, and the risks. Let that sink in.