Artificial intelligence is already reshaping the economy in ways both visible and difficult to measure.
As Greg Ip recently wrote in The Wall Street Journal:
“AI is more like a hurricane-strength weather system making itself felt across the entire economy. It is distorting the stock market, profits, the speed and composition of economic growth, trade, and even our moods — especially about the job market.”
AI’s Growing Influence on Markets and Work
Over the past several years, and most recently in our April Economic and Market Review video, we have been discussing the impact of AI with clients. These conversations often include the growing concentration within the S&P 500 among companies investing heavily in AI infrastructure, the unknown implications of future productivity gains, and the uncertainty surrounding long-term employment and career longevity.
Rapid technological change creates both opportunity and disruption. Headlines increasingly focus on layoffs attributed to the efficiency of AI-driven tools, while other companies are choosing to retain staff in anticipation of productivity gains that may strengthen future growth.
Why Planning Early Matters
For us, this reinforces the importance of addressing one’s financial situation sooner rather than later. Time is a precious, non-renewable resource that creates flexibility. The earlier potential weaknesses or gaps are identified, the more options exist to adapt thoughtfully as circumstances evolve.
At Gates Pass Advisors, financial planning comes first, and investment management follows, not the other way around. A client’s unique circumstances, priorities, and concerns should drive the investment approach. Financial plans also require ongoing maintenance and monitoring through life transitions, economic changes, and shifts within the capital markets.
Investments Should Reflect Real Life
As life changes, the plan evolves to keep investments aligned with changing needs and goals. A healthy asset allocation alone is not enough to support long-term financial success through shifting career paths, evolving economic conditions, and the emotional stress that uncertainty can create.
That is why we want to understand what matters most to our clients, and what concerns them. Increasingly, conversations extend beyond markets, inflation, and interest rates to include questions about stability, health, family, purpose, and the future facing children and grandchildren.
The Personal Side of Financial Planning
What we hear most often has less to do with P/E ratios and Federal Reserve meetings, and more to do with creating a life that feels stable, meaningful, and satisfying. While we remain deeply attentive to the technical side of financial planning, it is often the personal side that gives clients the confidence to move forward.
We do not pretend to know exactly where this “hurricane-strength weather system” will lead.
We do believe that effective planning does not require having all the answers first. In many cases, the most important step is identifying vulnerabilities early enough to address them while meaningful options remain available.
Confidence Through Uncertainty
Many clients feel unsettled by what they read in the media, whether related to AI, the economy, politics, or broader social change. Yet many also share a growing confidence that their financial lives are being managed intentionally and that their investments remain connected to what matters most to them.
That confidence allows them to spend less energy reacting to uncertainty and more energy focused on the people, relationships, and experiences that give life meaning.
If you would like to talk to an advisor at Gates Pass Advisors, please use this link.
Citation:
Greg Ip, “AI Is Distorting Practically Everything About the Economy,” The Wall Street Journal, published May 7, 2026.blank about what might be next. That is why we see ourselves as advisors and thought partners to our clients, helping them navigate this important life transition.