{"id":86273,"date":"2025-10-20T08:48:07","date_gmt":"2025-10-20T08:48:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/86273\/"},"modified":"2025-10-20T08:48:07","modified_gmt":"2025-10-20T08:48:07","slug":"blackstone-president-foresees-profound-ai-disruption-in-business","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/86273\/","title":{"rendered":"Blackstone President Foresees ‘Profound’ AI Disruption in Business"},"content":{"rendered":"

The president of private capital group Blackstone<\/a> says Wall Street is still underestimating artificial intelligence (AI).<\/p>\n

In comments published<\/a> Saturday (Oct. 18) by the Financial Times (FT), Jonathan Gray<\/a> says investors are discounting the potential of AI to render whole industries obsolete, and said that understanding these risks has become key for Blackstone when considering investments.<\/p>\n

\u201cWe\u2019ve told our credit and equity teams: Address AI on the first pages of your investment memos,\u201d said Gray at the FT\u2019s Private Capital Summit in London earlier in the week.<\/p>\n

As the FT noted, high valuations at loss-making AI startups and circular arrangements<\/a> between many major players have triggered concerns about a bubble in the sector. Gray said that enthusiasm among investors meant that some misallocation of capital would be inescapable, comparing the situation to that of \u201cPets.com in 2000.\u201d<\/p>\n

However, he said the scale of the AI space means that investors might still underestimate its potential to demolish whole industries.<\/p>\n

\u201cPeople say, \u2018This smells like a bubble,\u2019\u201d but they\u2019re not asking: \u2018What about legacy businesses that could be massively disrupted?\u2019\u201d said Gray. \u201cIf you think about rules-based businesses \u2014 legal, accounting, transaction and claims processing \u2014 this is going to be profound,\u201d he added.<\/p>\n

Advertisement: Scroll to Continue<\/p>\n

Gray\u2019s comments follow those of Amazon<\/a> founder Jeff Bezos earlier this month, when he contended that the AI boom is an \u201cindustrial bubble\u201d and not a \u201cfinancial bubble,\u201d<\/a> which means that even if the sector\u2019s share prices implode, the technology\u2019s benefits will stick around.<\/p>\n

Speaking at Italian Tech Week, Bezos cited the fiber-optic cable that outlived the dot-com crash and the life-saving drugs that were still available in the wake of the 1990s biotech bust.<\/p>\n

\u201cInvestors have a hard time in the middle of this excitement distinguishing between the good ideas and the bad ideas,\u201d Bezos said. \u201cThat\u2019s also probably happening today. But it doesn\u2019t mean that anything that\u2019s happening isn\u2019t real. AI is real, it\u2019s going to change every industry.\u201d<\/p>\n

Meanwhile, the PYMNTS Intelligence report \u201cWorkers Say Fears About GenAI Taking Their Jobs is Overblown\u201d <\/a>found a gulf between perceptions of generative AI\u2019s effect on the job market and people\u2019s perceptions of its threat to individual employment.<\/p>\n

While most workers agreed that the technology presents a systemic threat of job displacement, indicating a wide-ranging belief in its disruptive potential, a smaller number said they were worried that their own jobs were in jeopardy.<\/p>\n","protected":false},"excerpt":{"rendered":"The president of private capital group Blackstone says Wall Street is still underestimating artificial intelligence (AI). In comments…\n","protected":false},"author":2,"featured_media":86274,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,59325,43857,59326,343,344,58857,85,46,43,262,125,264],"class_list":{"0":"post-86273","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-ai-bubble","10":"tag-ai-investment","11":"tag-ai-job-disruption","12":"tag-artificial-intelligence","13":"tag-artificialintelligence","14":"tag-blackstone","15":"tag-il","16":"tag-israel","17":"tag-news","18":"tag-pymnts-news","19":"tag-technology","20":"tag-whats-hot"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/86273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=86273"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/86273\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/86274"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=86273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=86273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=86273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}