Goldman Sachs shared a counterintuitive view: AI won’t make markets more efficient—it will make them less efficient through herd behavior. Retail investors will become increasingly homogenized (since everyone is asking the same GPT), giving rise to ‘Herd 2.0’ while also creating opportunities for contrarian trades. Today’s market is no longer driven by fundamentals; 50%+ of stock returns come from sentiment/theme/trend exposure, and this will only intensify. Knowing what questions to ask is the moat in the AI era.