As the boom in artificial intelligence and ongoing inflation continue to shape the global economy, communities, businesses, and investors across the United States must be open to new opportunities arising from AI while hedging risks in their 2026 investment plans.
Like most global trends in history, AI and inflation are likely to have ripple effects closer to home, according to JPMorgan Private Bank's 2026 Global Investment Outlook.
“Uncertainty defined the market story in 2025,” said JT Auhimbaugh, Fort Worth market manager at JPMorgan Private Bank and vice chairman of JPMorgan Chase's North Texas market leadership team. “Today, we have key themes on our agenda that reflect fundamental changes in the way our economy operates. Those looking to restructure their investment portfolios in 2026 should consider modern investment strategies that blend discipline and flexibility.”
The age of AI: promises and paradoxes
Artificial intelligence is transforming industries, increasing productivity and reshaping labor markets, fueling a surge in investment and speculation about a potential AI bubble. The current AI boom is backed by solid foundations, and the biggest risk is not understanding how to integrate this technology, which can impact your business.
AI is a rapidly becoming competitive technology space, and investors need to find a balance that captures the potential of the AI revolution while managing the risk of over-hype. Although AI investments currently account for less than 1% of U.S. GDP, major U.S. technology companies are tripling annual capital spending from $150 billion in 2023 to a projected more than $500 billion in 2026. This surge in AI-related investment has already contributed more to U.S. GDP growth than consumer spending this year. More than half (58%) of small businesses say they use generative AI, up from 40% in 2024 and more than doubling the adoption rate in 2023, according to the U.S. Chamber of Commerce's latest Small Business Support Report.
If you run a small business, you know your organization inside and out. That deep understanding will be your strongest asset in navigating the world of AI. This means knowing how to use AI safely and effectively and how to incorporate it into your investment portfolio.
Beyond bonds: Surviving structural changes in inflation
The sharp rise in inflation and rising government deficits from 2022 onwards are redefining the investment environment, replacing stability with continued price pressures and heightened uncertainty. Today, the modest but significant impact of inflation has become a central consideration for long-term portfolio performance.
In your own business, inflation may also be driving up costs, impacting your supply chain and increasing pressure on labor costs. Perhaps you need to incorporate the effects of inflation into your returns. Inflation doesn't seem to be going away anytime soon.
In 2026, factoring inflation into your investment portfolio is essential. Investors need to look beyond traditional fixed income investments to combat persistent inflation and build portfolios with strength and stability. Other investment options that can hedge against persistent inflation and provide portfolio diversification include commodities, real assets, and hedge funds.
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