larry-fink-annual-chairmans-letter.pdf
“Third, there’s a real risk artificial intelligence could widen wealth inequality if
ownership does not broaden alongside it. When we talk about the economic disruption of AI, most of the conversation is about jobs. That’s an enormously important question, and one that goes beyond economics. Work provides income, purpose, and dignity. But history suggests that transformative technologies create enormous value—and much of that value accrues to the companies that build and deploy them, and to the investors who own them. The economy is rewarding scale like never before. In industry after industry, we’re seeing more divergent, “K-shaped” outcomes, where leading firms pull further ahead while others struggle to keep pace. The contrast can be striking: Walmart reached its highest-ever valuation, two weeks after Saks went bankrupt. AI may accelerate this trend further. The companies with the data, infrastructure, and capital to deploy AI at scale are positioned to benefit disproportionately. That is not unusual, and none of this is inherently problematic. Market leadership has always shifted with technological change. The broader question is who participates in the gains. When
market capitalization rises but ownership remains narrow, prosperity can feel increasingly
distant to those on the outside.”
Courtesy of Blackrock