Finance

FT warns AI anxiety to spark political backlash

Growing public unease over artificial intelligence is expected to trigger a political backlash, according to a new Financial Times report, even as institutional investors continue to pour capital into major tech firms.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: Financial Times · original
The coming rise of anti-AI populism
Analysts predict rise of anti-technology populism as markets rally on strong earnings

The Financial Times has reported that anxiety surrounding artificial intelligence technology is set to generate a political backlash, potentially heralding the rise of anti-AI populism. The publication frames this developing trend as a significant shift in the political landscape, suggesting that public unease regarding the rapid deployment of AI will translate into tangible political consequences.

This forecast emerges against a backdrop of intense geopolitical activity and robust market performance. US President Donald Trump is currently in Beijing for a two-day summit with Chinese President Xi Jinping, a meeting that covers critical issues including trade, artificial intelligence, and Iran. The summit is accompanied by a delegation of major technology executives, underscoring the central role AI plays in current international relations.

Despite the predicted political friction, financial markets have responded positively to the latest corporate developments. US stock markets rose as the summit began, with the Dow Jones Industrial Average gaining 0.8 per cent, the S&P 500 rising 0.3 per cent, and the Nasdaq Composite climbing 0.2 per cent.

Institutional investors have continued heavy buying of shares in technology firms, reflecting strong confidence in the sector. Nvidia shares surged more than 2 per cent on Thursday following US approval, while Amazon reported strong results for the fourth quarter of fiscal 2025. The e-commerce giant posted revenue of $213.4 billion and operating income of $25 billion, beating market expectations.

Amazon’s shares have risen 31.9 per cent over the recent month, driven by this institutional buying and the firm’s strong earnings. Analysts estimate that earnings per share will ramp up by 16.8 per cent, with the company providing guidance for revenue of up to $178.5 billion in the current period.

The juxtaposition of soaring tech valuations and the predicted political backlash highlights a complex dynamic. While capital markets reward the technological advancements driving these earnings, the Financial Times suggests that the societal implications of AI are beginning to crystallise into a political force that could challenge the status quo.

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