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'Great Wealth Transfer': emerging trends

As heirs receive trillions in assets over the next two decades, their investing preferences could create new opportunities. Some trends are already emerging.

Market briefs

Breaking insights on the economy, market volatility, policy changes and geopolitical events.

My Financial Picture®

Access to a more complete view of your finances

Surprising resilience of the S&P 500

Through inflation, recessions, overseas tensions and other volatile market events, this decades-old index has continually reinvented itself, historically tracking solid returns. What’s the secret to its durability?

CIO Market Update Audiocast Series

For latest insights on the markets, tune in regularly to the CIO's Market Update audiocast series.

Accelerating charitable impact

Giving through donor-advised funds

Gen Z is about to change everything

The first online generation is projected to eventually become the richest, and their financial preferences and social values are already starting to transform industries and markets

4 times to ask, "How will this affect my taxes?"

Considering the tax implications of key financial moves could save you money. Here’s what you need to know.

Core principles every investor should know

They can help you keep moving toward your goals, no matter what the markets are doing

Why renewable energy won’t be enough

As the world strives to go green, energy demand is rising. Where will the power come from — and what investing opportunities could be created? Watch our video.

Inflation and taxes: What you need to know

Adjustments made for inflation each year could affect how much federal income tax you owe. These strategies could help minimize your tax bill.

Let’s Talk Investments

Making charitable giving more tax-efficient

Harvesting your portfolio’s gains can help your philanthropic dollar go farther — and potentially lower your tax bill. Here’s how you can make this strategy a regular part of your wealth planning.

Managing your cash

A strategic, tiered approach could help optimize your returns while maintaining the liquidity and safety you need.

A step-by-step guide to building your portfolio

Weathering the ups and downs of the markets

How much is too much cash in your portfolio?

You may be tempted to increase your cash holdings when interest rates rise or markets become volatile. These insights can help you understand the risks as well as the benefits.

Capital Market Outlook

This timely commentary from our Chief Investment Office can help you navigate markets and take advantage of emerging trends across the globe.

Artificial intelligence: The next great tech wave?

In this first of three videos examining forces poised to transform the global markets and economy, our analysts explore artificial intelligence, or AI, and the hurdles it could face ahead.

Estate planning for a digital world

The assets you’ve stored online require expanded treatment from those you’ve kept in physical form.

What’s up with 10-year Treasury yields?

They dominated market headlines early in the year for their sudden rise and reflection of the larger economy. Here’s what they might mean for you.

Market Decode: Outlook 2026 preview

In a world of disruption, innovation and resilience, get ready for a transformational year ahead.

5 questions to ask your advisor in 2025

Reviewing your plans for investing, retirement and other financial priorities could help you prepare for new risks and opportunities ahead.

Market Decode: The new AI kid on the block

The latest player in the artificial intelligence (AI) space has rattled the tech sector, but the added competition may be positive news for investors, says the Chief Investment Office

Market Decode: Focus on trendlines, not headlines

When market news stokes volatility — and investor anxiety — it helps to remember the fundamental strengths of the current economy

Time to reconsider international stocks?

In a surprising turnabout, in the first quarter of 2025, European and Chinese equities have outpaced U.S. equities. What could that mean for your portfolio?

New trends driving equity markets now

Are valuations too high? Is the tech sector in a bubble? These and other top-of-mind questions are answered in this video about current market dynamics.

Market Decode: The coming mineral mining surge

Certain metals and minerals are critical to meeting global energy, defense and infrastructure needs, creating a number of potential investment opportunities

Market Decode: Minding the (insurance) gap

Climate-related disasters are causing a sharp rise in insurance rates. Infrastructure investment could be a possible solution.

The climb back: What past downturns tell us about the road to recovery

Encouraging lessons about volatility and the power of staying invested

Market Decode: 3 questions top of mind for bond investors now

Tariff-related trade disputes have been causing unexpected volatility in the bond markets. Here’s what you need to know.

Market Decode: Will the U.S. economy enter the “R” zone this year?

Chances of a recession are fading, says the Chief Investment Office. Watch the video to find out why.

What’s up with Treasurys, the deficit and the dollar?

Volatility has been rattling the bond markets — and weakening the value of the dollar. Watch this video for ways investors can consider responding.

What a declining dollar means for investors

The recent devaluation of the dollar is recalibrating the market. Watch to learn what it means for your portfolio.

What do Fed rate cuts mean for the bond market?

As speculation builds that the Federal Reserve might resume rate cuts, bond investors especially should be aware of the ripple effects.

What do Fed rate cuts mean for the bond market?

As speculation builds that the Federal Reserve might resume rate cuts, bond investors especially should be aware of the ripple effects.

A new look at portfolio construction

As investors navigate inflation, bouts of market volatility, the tax implications of new policy and more, do the principles that shape a balanced portfolio continue to hold up?

Market Decode: How to add AI to your portfolio

Artificial intelligence is a game-changer, improving productivity and potential profits across many sectors. But how do investors gain exposure to its potential? Watch our video for ideas.

Market Decode™: Small Caps, Big Potential

This often-underappreciated asset class is having a moment in today’s markets. Watch the video for reasons to consider adding it to your portfolio.

Progress report: Is AI a market bubble?

Despite some speed bumps, artificial intelligence is already radically transforming how we live and work. Here’s what to watch for next.

Family office decision

Determining what’s right for your family

Navigating your sale

Quiz: What’s your true risk tolerance?

Answering these questions can help you get a better handle on how you really feel about the market’s ups and downs and what that might mean for your investing decisions

How AI Could Potentially Impact the Economy and Markets

Artificial intelligence: A real game changer

After decades of development, machines that think, learn and create are transforming the economy, the markets and our lives
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ARTIFICIAL INTELLIGENCE (AI) HAS RIDDEN WAVES of public excitement, skepticism and fear since the 1950s.1 When ChatGPT — a language-processing chatbot capable of synthesizing reams of information and generating human-like text in response to queries — became widely available to consumers for the first time in late 2022, it was immediately apparent that a tipping point had been reached.

Just ask ChatGPT. Here’s the response we got when we questioned whether all the hype around AI is justified: AI “has huge potential and is making meaningful progress, but it’s important to balance the excitement with a realistic understanding of where the technology is and where it's heading.”

Human observers agree. “AI is transforming the global economy as electricity and the steam engine did in their own times,” says Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank. Below, Hyzy and Haim Israel, head of Thematic Investing for BofA Global Research, discuss the economic and market implications of the AI revolution.

Why is this finally AI’s breakthrough moment?

Chris Hyzy, Chief Investment Officer, Merrill and Bank of America Private Bank says “AI is transforming the global economy as electricity and the steam engine did in their own times.”

Put simply, it’s a marriage of technology and need. “More data is created in a single hour today than in an entire year two decades ago,” says Israel. “Until recently, AI could read and write but not understand content. That’s rapidly changed,” he explains. The onset of generative AI (GAI) systems such as ChatGPT enables machines to understand human language and produce human-like dialogue and content.

GAI systems are capable of generating new text, images and other media — think research reports, news items, speeches, poems, songs, videos, computer programs, you name it — from existing data. This technological leap has created an “iPhone moment” for AI, making its services available to billions of people through a growing array of commercial uses, says Israel.

How will generative AI change the economy?

“As the technology improves, expected benefits include higher productivity, cost efficiencies, as companies increasingly turn to GAI for content creation, software development, marketing and sales, and customer service,” Hyzy says. These capabilities will likely cut across industries and change the experiences of consumers as well as companies, he adds.

Graphic depicting statistics that reflect the growth of AI. Visit link below for a full description.

Sources, from left to right: Similarweb, “ChatGPT’s First Birthday is November 30: A Year in Review,” November 15, 2023; IDC as of September 2025; and UN as of April 2025.

Global IT spending associated with AI software, hardware and services will likely reach $1.26 trillion by 2029, compared with $316 billion in 2024.2 According to some estimates, AI will reach $4.8 trillion in global market value by 2033.3“Funding for AI development is pouring in from corporate and individual investors, as well as governments,” Israel adds.

What geographic regions and economic sectors are likely to benefit the most?

“The U.S. and China, already the world’s two largest economies, are likely to experience the greatest economic gains from AI,” Israel says. Together, China and North America will account for about 70% of the global economic impact of AI by 2030. In fact, PwC has estimated that AI will boost the GDP of China by 26.1% by 2030, and the combined GDPs of North American countries by 14.5%.4

Among sectors and industries, information technology should be a clear winner, with software development, semiconductors, data centers, cybersecurity, search engines and more expected to derive benefits. “Beyond software, major infrastructure upgrades will be needed to support the massive flow of information,” Hyzy says. Industries ranging from education and healthcare to aerospace and the law should also be transformed, Israel adds. In pharmaceuticals, “AI can help screen new drug compounds to predict their success rates, or identify the right candidates for drug trials,” he says. In the law, “AI can write legal documents and summarize cases.”

Haim Israel, head of Thematic Investing for BofA Global Research says “Until recently, AI could read and write but not understand content. That’s rapidly changed.”

Is AI likely to disrupt the labor market?

As with any major technological shift, the onset of AI is bound to shake up some professions and may eliminate some occupations. In the past, such shifts have mainly eliminated manual jobs, such as production-line manufacturing. What’s different this time is that AI is capable of handling many tasks associated with higher-end professions. “But predictions of wholesale job losses may be overblown,” Hyzy believes. “Advancements typically don’t just eliminate some jobs; they create whole new industries, businesses, skill sets and careers.”

What other potential risks does AI pose?

ChatGPT, when asked if AI poses a threat to humanity says “The challenge is ensuring that AI benefits everyone, reduces inequalities and doesn’t lead to unintended consequences.”

The widespread accessibility and use of ChatGPT and other GAI systems dramatically increase the risks of cyberattacks and fraud, Israel notes. As technology gets better at adopting human language and creating images, the risks of identity theft, for example, have only risen. The technology also presents new challenges in terms of privacy, as powerful AI systems have unprecedented ability to collect, use and potentially misuse data about private individuals.

In January 2025, the Federal Trade Commission issued a report highlighting concerns around partnerships and investments involving generative AI companies.5 In September 2025, it launched an investigation into the potentially harmful effects of AI-powered chatbots on children and teens.6 But effective market regulation and safety guidelines may be beyond the power of human security experts —  in other words, AI may be needed to erect barriers against AI. Other challenges: protecting intellectual property rights as AI reads and adapts existing text and images. And AI creators will also have to work hard to eliminate cultural biases from creeping into programs, Israel says.

How could investors benefit?

The promise of AI helped to lift markets in 2023 and 2024. But investors may now need to invoke a quality not normally associated with rapid advancements: patience. “While the technology will surely accelerate, we are still in the early stages with GAI and other forms of AI,” Hyzy says. Diversification, a good idea for any investor, is especially important for those considering new technologies.

As for larger questions of AI’s potential threat to humanity, the technology itself offers a cautionary perspective. Asked if humans should worry about AI taking over the world, ChatGPT responded, “It’s less about fearing AI ‘taking over’ and more about ensuring that we develop it responsibly, with the right safeguards in place. A big part of the challenge is ensuring that AI benefits everyone, reduces inequalities and doesn’t lead to unintended consequences.”

 

1 IBM, “The History of Artificial Intelligence,” October 21, 2024.

2 IDC, “Artificial Intelligence Infrastructure Spending to Surpass the $200Bn USD Mark in the Next 5 years,” February 18, 2025.

3 UN Trade and Development, “AI’s $4.8 trillion future: UN Trade and Development alerts on divides, urges action,” April 7, 2025.

4 Enterprise Technology Association, “Economic Impact and Projections Report: The Integration of AI and Emerging Technologies (2025–2030),” accessed September 2025.

5 Federal Trade Commission, “FTC Issues Staff Report on AI Partnerships & Investments Study,” January 17, 2025.

6 Federal Trade Commission, “FTC Launches Inquiry into AI Chatbots Acting as Companions,” September 11, 2025.

BofA Global Research is research produced by BofA Securities, Inc. (“BofAS”) and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC, and wholly owned subsidiary of Bank of America Corporation.

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).

Related Insights

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'Great Wealth Transfer': emerging trends

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