We are witnessing something like a new industrial revolution with AI. But drastic change doesn't come without major disruption. And right now, no one knows exactly what the shape the new AI economy will look like. While headlines focus on AI’s breakthroughs and hype, a quieter threat is building. One part is an overheated stock market, fueled heavily by AI-focused companies. The other is a historic upheaval in the labor market. Together, these forces make the economy far more fragile than most people realize.

The Wealthy Are Holding Up the Economy

Moody’s Analytics Chief Economist Mark Zandi is warning about a growing divide in the economy. High income households, he explained, are now the “last pillars” of economic strength. Their spending is what is keeping overall growth afloat.

That might not sound new, but the scale is staggering. The top 20 percent of earners now drive nearly two-thirds of all U.S. spending, a record high. Meanwhile, the rest of the country has seen their spending shrink by more than ten percent.

And Zandi has been blunt about the consequences if those top earners pull back. He warned a stock market downturn would “knock the wind out of” wealthier households and sharply increase the odds of a recession.¹

A Stock Rally Built on AI

Wealthy Americans hold nearly all the market’s value. In fact, the richest 20 percent of U.S. households own almost 93 percent of all stocks. Zandi said that these surging stock portfolios are the "single most significant driver of growth.”

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The problem is that these portfolios rely on a handful of AI-focused giants, often called the “Magnificent Seven.” They account for roughly a third of the S&P 500’s market capitalization and most of the S&P 500’s gains, while the rest of the market lags far behind.

Analysts warn these stocks are overvalued and overconcentrated, looking more like a bubble than a solid foundation.  If those stocks stumble, the impact would fall squarely on the households driving most of the country’s spending power.

But the rally in AI companies is not just a Wall Street story. History shows that concentrated gains can reverse quickly: during the dot-com crash, tech-heavy portfolios lost more than half their value within months. Today, millions of Americans hold retirement accounts heavily exposed to AI-focused stocks. A sudden drop in these valuations wouldn’t just hit Wall Street, it could cascade directly into 401(k)s, pensions, and household budgets nationwide.

AI’s Second Hit: The Labor Market

The second part of AI’s economic threat targets the labor market. A new MIT study shows it faces disruption on a massive scale. At this very moment, AI could replace nearly 12 percent of U.S. jobs. ²

The study relied on a tool called the Iceberg Index, developed by MIT and Oak Ridge National Laboratory. Instead of a simple forecast, it maps how workers, skills, and tasks interact across the country. It shows where today’s AI systems are already overlapping with human work. It gives a clear picture of where disruption is forming and how it could unfold.

One of the most striking findings is that job losses in tech account for just 2.2 percent of wage exposure. Researchers found more than $1.2 trillion in wages at risk across routine jobs in HR, logistics, finance, and office administration. Often overlooked by forecasters, these jobs are increasingly vulnerable.

The Iceberg Index also pushes back on the widespread belief that AI job losses will be confined to a few tech-heavy cities. The data shows the risk is spread across all 50 states. Even rural areas that many assume are safe from digital disruption.

AI's labor impact is coming at a time when job insecurity is reaching new heights in today’s “low-hire” environment. Employers are cautious about bringing on new staff despite economic growth. Many Americans fear their roles could be automated or downsized, and that uncertainty is affecting spending, confidence, and household financial planning across the country.

Economy on the Ropes

When you combine these two forces, the picture is unnerving. AI-fueled stock rallies are propping up high-income spending, while AI-driven automation threatens nearly one in eight jobs nationwide. With one hand the economy rests on a narrow slice of wealth that can pull back in an instant. And the other has a workforce facing disruption on a massive scale. The consequences could ripple through consumer confidence, regional economies, and even national GDP growth.

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Conclusion

As AI is transforming the economy, it's leaving uncertainty in its wake. And in moments like this, when AI is reshaping valuations, stressing the labor market, and threatening economic stability, the question becomes: what holds value when everything else is shifting? Gold has always been that kind of asset. Historically, during market crashes, inflation spikes, and periods of extreme uncertainty, physical gold outperformed both equities and bonds.

Held in a Gold IRA, it can provide long-term security against the very risks this AI revolution is creating. For those who value stability over speculative boom cycles, now is the time to consider anchoring part of your wealth in something real, tangible, and enduring. To learn more, contact American Hartford Gold today at 800-462-0071.
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Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

Notes:

1. https://finance.yahoo.com/news/moodys-chief-economist-mark-zandi-213116820.html

2. https://finance.yahoo.com/news/mit-study-reportedly-reveals-ai-175203800.html