Morgan Stanley's Simonetti: Still not known which companies will be effected negatively by AI

• AI is transformative across industries, with significant adoption and disruption expected in healthcare, financials, industrials, and materials, not just tech.
• Recommendations for market volatility include maximum asset class, sector, and regional diversification, owning real assets and fixed income.
• Morgan Stanley Private Wealth's top picks are U.S. equities over international, and emerging markets, which are expected to benefit from US-China trade normalization and energy prices.

Katerina Simonetti of Morgan Stanley Private Wealth Management discusses the transformative impact of AI across various sectors, highlighting opportunities outside of traditional tech. She advises on positioning for market volatility through diversification, real assets, and fixed income, maintaining a positive year-end outlook despite anticipating market corrections. Emerging markets are identified as a key pick.