By Tyger Fitzpatrick
Publication Date:
You’ll be hard-pressed not to come across articles in the media lately about AI’s doomsday. From dystopian predictions about the economic impact of AI to AI leaders announcing the end of white-collar jobs.
This article cuts through all the superficial noise to answer two questions. Which ASX tech companies will be affected by AI and which will benefit in the long term? Our tech analyst Roy Van Keulen recently downgraded the moats of four major ASX tech stocks due to AI disruption. Let’s dive deep into our research and extrapolate everything investors need to know.
Where AI has already worsened the moats
Over the past year, the ASX200 tech index has fallen 28%. The decline in this benchmark suggests that investors are expecting a slowdown in profitability in the technology sector. Many of these concerns are closely related to AI disruption. The term “AI glitch” is used frequently, but it doesn’t explain the mechanics at play. Simply put, AI reduces switching costs…