Has Artificial Intelligence Made Market Concentration Less Risky?

Published on May 12, 2026

No. Artificial intelligence (AI) has changed the shape of market concentration more than its substance. Leadership has expanded beyond the largest technology platforms into semiconductors, infrastructure, industrials, and utilities, but many of those winners remain tied to the same AI capex cycle. As a result, the market may look broader on the surface, while still being unusually exposed to a narrow set of companies and a single dominant narrative.

That concentration risk is visible in the structure of the global equity market. US equities now account for roughly 64% of the MSCI All Country World Index, up from 42% in 2010, while the top ten US companies make up about 25% of the benchmark. Information technology holds a peak 37% share of the S&P 500, above late-1990s levels. These figures show that market leadership remains unusually concentrated, even as leadership has spread to a wider set of AI-linked beneficiaries.

 

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