Morningstar points out that companies are increasingly using artificial intelligence as an excuse to cut staff and reduce costs, rather than leveraging the technology to boost productivity by redeploying employees.

Analyst Lachlan Holloway stated that the market seems to be entirely focused on what artificial intelligence might destroy, rather than the value it can create. Concerns about how artificial intelligence will reshape the economy and the labor market have dominated investor sentiment this month, leading to corrections across various industries—some refer to this as the "AI panic trade." As earnings season and corporate performance guidance come under closer scrutiny, companies are now focusing on how artificial intelligence might impact their balance sheets.