Ray Dalio Warns That Things Aren't As Good As They Appear Despite New Highs In The Stock Market: 'You Can't Look At The U.S. As A Whole Nowadays'

Bridgewater Associates founder Ray Dalio is skeptical of the U.S. economy despite a soaring stock market and rising GDP, and his flaws point to future economic challenges if they are not addressed.

He warned of a country that heavily depends on the top 1% of its workers. The stock market and economy are heavily tied to artificial intelligence, which has created a rosy picture, as many industries and workers face challenges.

"You can't look at the U.S. as a whole nowadays," Dalio said at the Fortune Global Forum last week.

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The World Depends On AI

Although AI has pushed the envelope on human possibilities while attracting plenty of fanfare among investors, its status as a global linchpin risks too much concentration of talent and wealth. Dalio believes that 1% of the population, the people who are the most involved with AI, will have an outsized influence on the global economy in the years to come.

"If you're looking at, let's say, the AI world, and really what amounts to about three million people—1% of the population—leading, and then…the 5% or 10% around them, you have one world that the whole world is dependent on," he said. "Then you have the bottom 60% of the population."

The dependency on AI may grow as companies replace more jobs. For instance, Amazon (NASDAQ:AMZN) is about to lay off up to 14,000 corporate employees. That represents roughly 10% of the company's corporate employees.

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The AI Gap May Get Bigger

Corporations regularly look for ways to boost revenue and profit margins, and AI may allow them to do both. Amazon is one of the many companies that is looking to replace more of its workers with AI. Grocery stores have been using self-checkout for years in a bid to reduce their reliance on cashiers, including Whole Foods, one of Amazon's subsidiaries.

Retail workers aren't the only jobs that are in danger. The British Film Institute released a report in June warning that AI is a "direct threat to the economic foundation of the U.K. screen sector," as AI tools are being used to create and enhance films. That's also bad news for Hollywood, which provides similar jobs and services as the U.K. screen sector.

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These are two of the many jobs that are facing disruption due to AI tools, which are still in their early stages. AI will continue to get better from here, and all of those disruptions will concentrate even more talent and capital into the industry.

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AI Is Fueling GDP Growth

Dalio's warning makes more sense when considering AI's impact on GDP. AI spending from big tech companies contributed to 1.1% of GDP growth in the first half of 2025, according to a JPMorgan Chase (NYSE:JPM) report. AI played a bigger role in GDP growth than U.S. consumer spending.

As AI becomes an engine of economic growth, it can create a greater disparity between the AI workers and everyone else. Dalio mentioned 60% of workers are unproductive, but that number may go up in the years ahead as AI replaces more jobs.

The only conundrum is that as AI replaces more jobs, consumers will likely end up with less money to spend. The economy hasn't reached that stage yet, but it's good to consider who will spend money if AI's ability to replace jobs continues to accelerate.

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This article Ray Dalio Warns That Things Aren't As Good As They Appear Despite New Highs In The Stock Market: 'You Can't Look At The U.S. As A Whole Nowadays' originally appeared on Benzinga.com

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