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Speaker 1: Joining me now is Andrew Kurtain Milford Asseid Management, Hi,

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Speaker 1: Andrew Igniting Heather Right, what is the latest with the

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Speaker 1: stock markets and the AI tools.

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Speaker 2: There's a lot going on underneath the surface this year.

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Speaker 2: I think a lot of people maybe just look at

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Speaker 2: it the headline market, which has sort of been flat

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Speaker 2: too moderately higher, but beneath the surface, there's a huge

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Speaker 2: amount of change going on. So the key key development

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Speaker 2: over the last couple of weeks has been this AI

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Speaker 2: model which is called Claude, which is produced by a

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Speaker 2: company called Anthropics, the second largest large language model company

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Speaker 2: in the world. Has released as amazing upgrades to their

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Speaker 2: model and it's called Chlord Code and another version of

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Speaker 2: it called Cord Coword, which is basically changing how people

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Speaker 2: look at using AI in the workplace. So I think

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Speaker 2: until now people sort look at AIS kind of like

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Speaker 2: a chat bot. You use it personally, you ask it

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Speaker 2: a few questions. It's kind of cool, but it doesn't

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Speaker 2: really change much. I think we've finally got to the

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Speaker 2: point where AI has got to the point that can

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Speaker 2: be used day in your job, that can replace what

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Speaker 2: you're doing. It can potentially mean you're going to save

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Speaker 2: hours and hours out of your day. A compettion mean

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Speaker 2: you might lose your job because it's going to be

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Speaker 2: so good that you don't actually need certain people. And

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Speaker 2: so it's really having a big impact on the market.

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Speaker 2: It sent things into a little bit of a tailspin.

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Speaker 2: Just to give you some context, some of the largest

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Speaker 2: software companies in the world are down fifty percent here today,

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Speaker 2: so in about six or seven weeks.

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Speaker 1: Wow, So what sort of companies are winning and losing

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Speaker 1: on the back of this.

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Speaker 2: So at the moment, the market's treating the losers as

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Speaker 2: companies which generate revenues from operations which are primarily able

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Speaker 2: to be disrupted by artificial intelligence, and it's generally white

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Speaker 2: collar workforce companies. So software is the sort of primary

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Speaker 2: candidate at the moment. They generate most of their revenues

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Speaker 2: selling software product products which are built by a bunch

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Speaker 2: of engineers and coders which develop it. Or AI is

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Speaker 2: showing that it can actually very efficiently code and develop

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Speaker 2: software products. So yeah, all those companies are getting torched

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Speaker 2: at the moment, and then over the last week it

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Speaker 2: start is spreading into a lot of other companies. You

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Speaker 2: wouldn't think it would hit insurance, Bokus financial advisors, companies

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Speaker 2: that sell information or data, so basically anything that doesn't

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Speaker 2: produce a physical product and seems ripe for AI to

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Speaker 2: come in and actually replace what they do. Wow.

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Speaker 1: Okay, So on the carry out.

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Speaker 2: The winning side, because there are there are a few

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Speaker 2: that are winning on the winning side if you kind

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Speaker 2: of take the view of the world that ALI is

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Speaker 2: going to make every company that's sort of digitally based

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Speaker 2: potentially at risk, or what you want to do is

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Speaker 2: by companies that produce physical or real assets. So you're

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Speaker 2: seeing infrastructure companies up perform, natural resources companies such as miners,

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Speaker 2: even oil stocks are out performing. And of course companies

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Speaker 2: that are producing the physical assets that go into AI

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Speaker 2: data centers, like the chips and the and the bear

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Speaker 2: metal that goes into producing the data centers and sales.

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Speaker 1: Outside of the stock market itself, Are they likely to

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Speaker 1: be any large impacts on our daily lives this year?

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Speaker 2: Yeah, it's an interesting question because at the moment not really.

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Speaker 2: I I predict that sort of throughout twenty twenty six

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Speaker 2: we will start to see more and more impact. I

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Speaker 2: think it's going to start for Aaron and white collar

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Speaker 2: jobs are going to be almost forced to start using

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Speaker 2: AI more and learning it because everyone else aroundman is

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Speaker 2: going to be doing so it becomes a bit of

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Speaker 2: a competitive thing that you need to know how to

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Speaker 2: use it and implement it in your day to day job.

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Speaker 2: And then I think probably the bigger impacts could be

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Speaker 2: sort of looking more of the twenty seven twenty eight

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Speaker 2: I think at this point you may start to get

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Speaker 2: to the point where there's lots of job losses coming

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Speaker 2: from AI. Certain jobs that you are more about sort

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Speaker 2: of data mining, data replacement, analytical work that is easy

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Speaker 2: to replace, those people could be at threats. So yeah,

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Speaker 2: there's some potentially quite worrying medium term implications here that

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Speaker 2: could cause sort of widespread job losses and a massive

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Speaker 2: reallocation of how labor works in the workforce.

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Speaker 1: Okay, so we've got in video reporting tomorrow. What are

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Speaker 1: we expecting.

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Speaker 2: Strong Asult, I think that that is pretty well positioned

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Speaker 2: still with his AI build out. It still produces the

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Speaker 2: best AI chips in the world, and at the moment

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Speaker 2: demand for AI chips it's basically at peak all time levels.

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Speaker 2: It's accelerating a huge amount over the last of the

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Speaker 2: three to six months, So we speak strong numbers from Nvidia.

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Speaker 2: Does the share price go up on those numbers? There's

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Speaker 2: more of a question. Well, they've got such a big

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Speaker 2: company now it's got a little bit of competitive threat

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Speaker 2: coming from other companies, So yeah, sort of. My expectation

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Speaker 2: is probably strong numbers, but we may not get a

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Speaker 2: big share price pop on it. Yeah, brilliant.

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Speaker 1: Hey, it's good to talk to Andrew. That's fascinating. Andrew

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Speaker 1: Kurtain from Milford Asset Management.

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Speaker 2: For more from Heather Duplessy Allen Drive, listen live to

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