Co-author of viral post on AI impact says he was shorting those stocks

MarketWatch

by Steve Goldstein

February 24, 2026

AI-Generated Deep Dive Summary

The co-author of a widely-shared report discussing artificial intelligence’s potential to disrupt various industries revealed that he had placed bets against companies he believed would be negatively impacted by AI. Alap Shah, the chief investment officer at Lotus Technology Management, disclosed in a Bloomberg Television interview that his firm had established short positions on businesses they deemed vulnerable to AI-driven changes. This move reflects a growing trend among investors to hedge against the risks posed by technological advancements. In the interview, Shah explained that his firm’s strategy involves analyzing companies whose core operations could be threatened by AI innovations. Sectors such as software, retail, and financial services were identified as particularly susceptible to disruption. By shorting these stocks, Shah aims to capitalize on potential declines in their value as AI adoption accelerates and competition intensifies. The timing of this revelation coincides with heightened concerns about the impact of AI on traditional industries. Recent market volatility has been partly attributed to fears that AI could render certain business models obsolete or significantly reduce demand for human labor in key sectors. Shah’s approach highlights the speculative nature of investing in a rapidly evolving technological landscape, where even established companies may struggle to adapt. For investors and financial professionals, this strategy underscores the importance of considering both opportunities and risks associated with AI adoption. While some businesses may thrive by integrating AI into their operations, others could face existential threats. Shah’s decision to short certain stocks serves as a reminder of the potential rewards—and perils—of positioning oneself ahead of major market shifts. This story also raises broader questions about how investors should approach AI-related risks in their portfolios. As AI continues to disrupt industries, more investors are likely to adopt strategies that account for both growth and decline scenarios. Shah’s actions demonstrate that shorting can be a viable tool for managing risk in an era where technological innovation is reshaping markets at an unprecedented pace.

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Originally published on MarketWatch on 2/24/2026