Is it smart to invest in Artificial Intelligence?
As seen in The Oakland Press
February 22nd, 2026
Is it smart to invest in Artificial Intelligence?
by Ken Morris
There were several confusing Super Bowl commercials that attempted to explain the benefits of Artificial Intelligence (AI). There’s no question that AI will significantly change our lives in the years ahead. Many companies that were on the cutting edge of AI saw the value of their stock rise significantly in just a few years. Recently, however, many of those values have drastically decreased.
Some analysts suggest that certain companies that had cutting-edge potential put too much money into development. Others say that AI proliferation is a certainty and will dramatically increase unemployment across the country. Cause for fear? Perhaps.
But for certain, the investment world is anticipating significant changes in how we live our daily lives. And many companies are working hard and investing harder to be at the forefront of the AI transformation.
Times are changing and investors need to be mentally prepared for frequent volatility. While I’m excited about what AI will bring into our lives, I know there will be losers, as well as winners. Just look back at the history of our auto industry. Its infancy saw many exciting innovations, and yet many car companies didn’t make it.
Some investors lost their life savings while others made fortunes. Current investors need to remember that success for auto makers didn’t happen overnight. It was a bumpy journey for a number of years, filled with peaks and valleys. I expect that we’ll see a similar volatile journey for AI with some surprise losers and winners. In fact, some future winner could be a start-up in someone’s garage right now.
Still, investors should not get so excited that they bet their entire nest egg on one horse. Nor should they be so fearful that they do nothing. I’ll never forget the Internet bubble in the late 90s. Investors were throwing money into companies that had anything to do with the Internet, many just chasing the excitement of a cutting-edge technology. Investment values were rising rapidly, right up until the bubble popped and the dollars disappeared into thin air.
Is it possible that history could repeat itself with AI? I’m not a market forecaster, but I see it a different way. I see a significant difference between the Internet bubble and what’s happening today. The difference being that many established companies with a history of solid earnings and strong balance sheets are investing in AI. It’s far more than speculation. Yes, there are a number of small start-ups, but established firms that are household names are paving the way.
In recent years we have survived the pandemic, seen conflicts across the globe, battled inflation and endured many unsettling domestic issues. And through it all the markets have been resilient and overcome a number of periodic setbacks.
Nobody knows exactly what lies ahead but investors need to be mentally prepared for a bumpy road during the AI rollout. History has shown that having the patience to navigate that road is more rewarding than staying on the sidelines.
Super Bowl ads provided us with a glimpse of the AI future. It’s clearly more than a fad. There will be plenty of opportunities to invest in AI companies. If you choose to travel that road, here are a few words of advice. Keep your wits about you. And buckle up.
