By Eric Compton, CFA
Publication Date: 2026-03-23 00:00:00
Artificial intelligence will challenge companies whose strengths depend on workflows, work intensity and application stability, while sustaining or even strengthening companies based on infrastructure, proprietary data, network effects or specialized domain workflows.
The impact of AI is embedded in stock prices today, but we also expect greater volatility in the near term as AI labs that eventually aim to go public continue to rapidly iterate their drug offerings.
To consider the impact of AI on company moats, we reassessed the moat ratings for 132 companies where we felt AI could be disruptive and therefore required more in-depth analysis.
Measuring the impact of AI on economic moats
The Morningstar Economic Moat Rating summarizes the duration of a company’s competitive advantage. An economic moat is a structural feature that allows a company to generate excess profits over a long period of time. If Morningstar analysts believe excess returns will last for 20 years…
