23 Aug Should I put AI investments in my portfolio?

Q. Everyone is talking about AI. It’s good, it’s bad, it can help us all make money or we will lose our jobs. Should I invest – or divest – from these companies?
— Investor

A. There certainly is a lot of talk about AI.

Should you get a piece?

Yes, but be selective about which companies you choose to invest in, said Jody D’Agostini, a certified financial planner with The Falcon Financial Group in Morristown.

“AI has created huge earnings and profits for companies thus far and will create efficiencies to drive business into the future,” she said. “Next year there is already over $1 trillion being invested in AI.”

But, she noted, the valuations of many of these tech firms are currently very high and the investments they have made in AI are unprecedented. It has yet to be seen who will benefit long term from these investments and how quickly they will turn a profit, she said, adding that we’ve seen large, recent shifts up and down in the markets.

“I would look for AI companies that have a more diversified business that are well established and are not solely dependent upon AI for their profitability,” she said. “I would not make AI the sole focus of your investment selection.”

We have seen that overconcentration in a few companies or sectors can become derailed, she said.

“Different sectors thrive in different parts of the economic cycle,” D’Agostini said. “For long-term investing, it is advisable to invest regularly and to establish a diversified asset allocation and to regularly rebalance your account.”

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This story was originally published in August 2026. 

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