{"id":528763,"date":"2026-03-09T12:01:11","date_gmt":"2026-03-09T12:01:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/528763\/"},"modified":"2026-03-09T12:01:11","modified_gmt":"2026-03-09T12:01:11","slug":"how-to-position-your-portfolio-for-the-ai-impact-expert","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/528763\/","title":{"rendered":"How to position your portfolio for the AI impact? Expert"},"content":{"rendered":"\n

Artificial intelligence impact<\/a> has been the emerging story of 2026.\u00a0<\/p>\n

Many ASX and global technology shares<\/a> have been heavily sold off already due to disruption fears. <\/p>\n

\"Man<\/p>\n

Image source: Getty Images<\/p>\n

AI fears <\/p>\n

The early tech sell-off has been a result of the fear that software and tech companies’ main products and functions could be replaced by AI<\/a>.\u00a0<\/p>\n

Should this happen, consumers would theoretically be able to access more affordable and efficient products rather than paying for the services of these companies.\u00a0<\/p>\n

At this stage, this fear is based largely on a prediction rather than proof.\u00a0<\/p>\n

However, some technology companies will undoubtedly be able to integrate AI into their existing systems, ultimately benefiting from AI advancements.\u00a0<\/p>\n

There have already been examples of this AI adoption by companies like Amazon<\/a> and here in Australia<\/a> WiseTech Global Ltd (ASX: WTC<\/a>).<\/p>\n

The bottom line is, investors have been rotating out of technology shares due to AI fears.\u00a0<\/p>\n

That means some tech stocks are at an all-time value<\/a> due to misguided fear.\u00a0<\/p>\n

Meanwhile, others might have been correctly sold off as their products could truly be replaced in the near future.<\/p>\n

How do investors know how to identify the two?<\/p>\n

A new report from Vanguard has weighed in on how the investment company views this problem.\u00a0<\/p>\n

How to prepare for AI’s economic ripple effect <\/p>\n

In the recent report<\/a>, Vanguard said AI’s transformative impact is likely to extend well beyond the tech sector, creating widespread economic opportunities.<\/p>\n

According to Vanguard, AI finds itself in a tug-of-war with another powerful, countervailing megatrend: fiscal deficits.<\/p>\n

On one side, AI will potentially act as a powerful engine for growth, boosting productivity, innovation, and real GDP, and helping governments grow their way out of fiscal pain.<\/p>\n

On the other side, structural fiscal deficits, driven largely by an aging society, create downward pressure by potentially driving up inflation and interest rates.<\/p>\n

Based on this, there are two possible scenarios:<\/p>\n

AI wins: Productivity accelerates; growth surprises to the upside. Deficits dominate: Fiscal pressures weigh on markets and risk assets. <\/p>\n

Vanguard’s model shows that AI is likely to win the tug-of-war, potentially driving U.S. real GDP growth above 3%\u2014a significant upgrade from current consensus forecasts.<\/p>\n

However, the second-most likely scenario is that AI fails and deficits dominate, which would result in a lower-than-consensus growth outcome of around 1.0%.<\/p>\n

Focus on companies using AI to maximum effect <\/p>\n

Vanguard said when innovations like AI mature and diffuse through the economy, the biggest beneficiaries aren’t necessarily the original innovators.<\/p>\n

History shows that value rotates from technology creators to technology users which is the opposite of what many investors assume.<\/p>\n

The companies building the new technology are the early winners, but over time return on equity (ROE) accrues to businesses that use it to boost productivity.<\/p>\n

These forces help explain why value stocks have historically outperformed during the later stages of major technology cycles, when adoption broadens beyond the innovators.<\/p>\n

This means the biggest gains may flow to those sectors and regions that aren’t currently in the spotlight. Think financials, healthcare, and industrials\u2014sectors where Australia shines.<\/p>\n

Foolish takeaway\u00a0 <\/p>\n

Based on the report from Vanguard, AI is not just a cycle, it’s a mega trend.\u00a0<\/p>\n

Vanguard thinks of mega trends as those forces that are likely not just to affect markets but transform the economy and society.<\/p>\n

Those driving the early growth may not be the companies set to benefit the most, as beneficiaries will be those companies that adopt and utilise AI to their advantage.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Artificial intelligence impact has been the emerging story of 2026.\u00a0 Many ASX and global technology shares have been…\n","protected":false},"author":2,"featured_media":528764,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":["post-528763","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/528763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=528763"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/528763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/528764"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=528763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=528763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=528763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}