How Markets Price AI Risk

Markets are pricing AI risk by discounting slow-growing software categories (vertical software down 43%, workflow tools down 39%) while rewarding faster-growing sectors like data infrastructure and security. The author argues that AI doesn't necessarily displace software with strong moats; instead, markets are punishing companies that cannot demonstrate growth acceleration despite automation efficiency gains. Evidence from Atlassian shows how AI adoption creates new revenue opportunities through increased operational complexity rather than customer displacement.