The warning from Nigel Green comes as software and payments shares plunged on Monday after Citrini Research published a report on AI risks which triggered a broad selloff across delivery platforms, private capital firms and financial services companies.
He says: “Markets are delivering a serious signal. Capital is being repriced around the implications of AI and tech in real time.
“Investors who treat this as 'noise' are underestimating the scale of structural change now underway.
“Recent trading patterns show a decisive shift from enthusiasm about AI productivity gains toward scrutiny of who stands to lose pricing power.”
The volatility follows several weeks in which sectors once viewed as clear beneficiaries of AI have instead faced intense selling pressure.
This marks a turning point in how markets assess technological disruption.
The deVere CEO notes: “For more than a year, AI was largely priced as upside. Now markets are assessing displacement risk.
“This transition changes valuation frameworks across industries.”
Wealth management experienced pressure a week and a half ago after new AI-driven planning tools demonstrated how quickly elements of domestic advice could be systemised.
He says: “Routine single-jurisdiction tax optimisation and template-based planning can now be delivered faster and at lower cost. The shift is permanent, and firms built primarily around process-driven models face margin compression.”
However, Nigel Green argues that extrapolating automation risk across entire industries risks oversimplification.
He says: “An algorithm operating inside one jurisdiction works within a contained framework.
“Clients with international assets, cross-border residency exposure and multi-currency portfolios don't live within contained frameworks.”
“Residency rules evolve, bilateral tax treaties change, and capital gains regimes differ. Regulatory divergence between major regions is increasing, and geopolitical complexities are mounting.
“Strategic wealth structuring requires coordination across these moving variables.”
He links the AI scare trade to a broader environment of geopolitical fragmentation and fiscal pressure.
He says: “Trade disputes, sanctions regimes, regional conflicts and debt-driven tax policy adjustments directly influence capital flows and portfolio construction. Long-term advisory demands interpretation of political risk alongside financial data.
“AI processes information at extraordinary speed. It does not independently anticipate how shifting geopolitical realities reshape long-term structuring decisions.”
Nigel Green emphasises that the same analytical lens applies beyond financial services.
He says: “In logistics, route optimization and demand forecasting are increasingly automated.
“In software, code generation and support functions are evolving rapidly. In payments, transaction processing and fraud detection rely heavily on advanced models.
“The core question for investors is whether a company's value proposition strengthens through AI integration, or weakens because its primary function becomes commoditised.”
He expects the repricing to accelerate consolidation across several sectors.
“Operators built around narrow, repeatable workflows face greater competitive pressure as automation increases efficiency and transparency.
“Organizations with diversified capabilities, international reach and regulatory depth are structurally more resilient.”
Nigel Green advises rigorous evaluation rather than reactive positioning.
“Periods of structural repricing demand disciplined analysis. Balance sheet strength, global footprint, governance standards and the ability to combine AI and tech with experienced human oversight are decisive factors.”
For consumers and clients, scrutiny of providers becomes equally critical.
He says: “Clients should assess whether their adviser or service provider operates across jurisdictions, understands evolving regulation and integrates advanced tools within a robust oversight framework.”
“Scale, cross-border infrastructure and institutional experience provide insulation in environments where routine services are increasingly automated.”
Nigel Green concludes: “The AI scare trade signals the emergence of a more selective market phase.
“Automation will continue to compress uniform services, while complexity and strategic judgement command greater value.”
“Investors and consumers who recognize that distinction early will be better positioned as AI and tech reshape pricing power, competitive dynamics, and consolidation patterns across the global economy.”
deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.