AI Disruption, Opportunity, and the Future of Work

Fifteen years ago, Marc Andreessen famously said that “software is eating the world.” At the time, that idea felt bold. Today, it feels obvious. Nearly every industry has been reshaped by software, automation, and connectivity. Now, we are entering the next phase of that evolution, and artificial intelligence is at the center of it.

AI is not just another technology cycle. AI disruption will be a foundational shift in how work gets done, how services are delivered, and how value is created. But as with every major transition, it brings both uncertainty and opportunity. The goal is not to view this moment through a lens of fear, but through a lens of perspective.

Periods of rapid innovation have always caused disruption. The internet changed retail. Smartphones changed communication. Cloud computing changed business infrastructure. Each wave created winners and losers, but more importantly, each wave expanded what was possible.

AI appears to be following the same pattern, only faster.

Recent research examining the trajectory of AI capability suggests that progress may be compounding. Tasks that once required specialized human expertise are increasingly being assisted, accelerated, or in some cases performed by AI systems. That does not mean humans are being replaced wholesale. Instead, it means the nature of work is shifting toward higher-value judgment, creativity, and strategic thinking. We still need human decision makers.

That is the part of the story that often gets lost in the headlines. Disruption is real, but so is productivity. And productivity has historically been the engine behind corporate growth, long-term market expansion, and in my opinion, the most important thing – our standard of living.

Entrepreneur Matt Schumer recently captured this moment well in an article on X, noting that ignoring AI carries real risk, but so does missing the opportunity it creates. That tension is exactly where we are today. Some organizations are hesitant to adopt new tools. A 2025 McKinsey report shows that only 7% of companies have fully integrated AI across their organization. Others are leaning in aggressively. Over time, the gap between those two approaches could matter.

From an investment perspective, this dynamic is already showing up in the markets. Expectations around AI have driven significant capital spending, rapid repricing in certain sectors, and periodic volatility as investors try to sort out which companies will ultimately benefit. That process is messy. It always has been.

But if history is any guide, markets eventually settle into a clearer understanding of where durable value is being created.

One of the most important lessons from previous technology revolutions is that innovation does not eliminate the need for expertise. It changes where expertise lives. When software became mainstream, it didn’t remove the need for business strategy, legal advice, financial planning, or healthcare. It simply changed how those services were delivered.

AI will likely do the same.

The tools are becoming more powerful, but they still rely on data, infrastructure, and human oversight. Trust, judgment, and relationships still matter. In many professions, including financial services, AI may enhance decision-making rather than replace it. It can help analyze more information, spot patterns faster, and improve efficiency. But the role of thoughtful guidance for nuanced personal financial decisions remains.

There is also a broader economic layer to consider. Major technological shifts can create short-term friction in the labor market as skills evolve and roles adjust. That is not new. It happened during the Industrial Revolution, the rise of manufacturing, and the expansion of the internet economy. In each case, the transition periods were challenging, but the long-term result was a larger and more productive economy.

That does not mean every company or every job benefits equally. Markets go through periods of over-excitement and overreaction. Valuations can stretch. Expectations can get ahead of reality. Then comes the recalibration. This cycle has repeated across nearly every major innovation wave.

What matters most for investors is maintaining perspective.

AI may reshape industries, shift competitive advantages, and influence economic productivity for years to come. But core investment principles do not change. Diversification still matters. Long-term discipline still matters. And trying to predict every short-term winner or loser is rarely a reliable strategy.

At Cirrus, we often talk about keeping our eyes on the horizon, not the headlines. AI will continue to generate headlines. Some will be optimistic. Some will be alarming. The truth, as is often the case, will likely land somewhere in between.

What feels clear is that we are early in a multi-year transformation. Businesses are experimenting. Workers are adapting. Entire sectors are trying to understand what this technology means for them. Over time, the picture will become clearer. But progress rarely moves in a straight line and we'll need to explore the risks of this new technology and society will need safety measures. Year-to-date sector returns highlight the not-so-straight-forward perspective of the market. Technology companies have dominated headlines over the last few years, but even with the AI advancement, we’re seeing rotational shifts into non-tech sectors.

Innovation tends to arrive in waves, with bursts of excitement followed by periods of reflection. AI appears to be in that early acceleration phase where it feels like we're lacking proper safeguards. That is when uncertainty feels highest. It is also when the foundations of the next generation of growth are often being built and when we'll decide as a society on how to handle the potential for unexpected risks.

For investors, that means staying grounded and on course. It means recognizing the magnitude of change without assuming every development is either a breakthrough or a threat. And it means remembering that throughout history, those who stayed patient and adaptable were often the ones best positioned to benefit from long-term transformation.

Disclosure:

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