As the boom in artificial intelligence and ongoing inflation continue to shape our global economy, communities, businesses and investors across the U.S. should be open to new opportunities generating from AI, while hedging against risk in their investment plans for 2026.

According to J.P. Morgan Private Bank’s 2026 Global Investment Outlook, like most global trends throughout history, AI and inflation will likely have ripple effects that hit close to home.

“In 2025, uncertainty defined the market narrative,” said J.T. Aughinbaugh, Fort Worth Market Manager of J.P. Morgan Private Bank and Vice Chair of JPMorganChase’s Market Leadership Team in North Texas. “Today, we have major themes setting the agenda, reflecting a fundamental shift in how economies operate. Those looking to reconfigure their investment portfolio in 2026 should consider a refreshed investment playbook that blends discipline with flexibility.”  

The age of AI: Promise and paradox

Artificial intelligence is transforming industries, driving productivity and reshaping labor markets, fueling a surge in investment and speculation about a potential AI bubble. This current AI boom is anchored by solid fundamentals, and that the greatest risk is a lack of understanding how to integrate this technology, which could impact your business.

AI is a tech sector rapidly becoming more competitive, and investors should find the balance between capturing the potential of the AI revolution while managing the risk of over exuberance. Although AI investments currently account for less than 1% of U.S. GDP, large U.S. tech companies have tripled their annual capital expenditures from $150 billion in 2023 to a projected $500 billion or more in 2026. This surge in AI-related investments has already contributed more to U.S. GDP growth than consumer spending this year. Over half (58%) of small businesses say they use generative AI—up from 40% in 2024 and more than double the adoption rate in 2023, according to U.S. Chamber of Commerce’s latest Empowering Small Business Report.

If you’re running a small business, you know your organization inside and out. That deep understanding will become your strongest asset in navigating the world of AI – how to use it safely and effectively and knowing how to include it in your investment portfolio.

Beyond bonds: Navigating inflation’s structural shift

The sharp rise in inflation since 2022, coupled with increased government deficits, has redefined the investment landscape, replacing stability with ongoing price pressures and heightened uncertainty. Today, inflation’s gradual yet significant impact is a central consideration for long-term portfolio performance.

In your own business, inflation has likely driven up costs, affected your supply chain and added pressure on labor expenses. You’ve likely had to integrate the effects of inflation into your bottom line – inflation doesn’t appear to be going away any time soon.

Factoring inflation into your investment portfolio is vital in 2026. Investors will need to look beyond traditional fixed income investments to address persistent inflation and build portfolios for 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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