Dimensional Fund Advisors Founder: AI Will Not Change Investment Paradigms

David Booth, founder and chairman of Dimensional Fund Advisors, stated that while AI will drive innovation in sectors like healthcare and transportation, it will not alter the pricing logic of stock and bond markets. Booth argued that markets are efficient information-processing machines where prices already reflect available data, making it impossible for AI to systematically identify mispricing for excess returns. He cautioned against concentrating investments in AI-themed stocks, citing the dot-com bubble's telecom sector collapse, and recommended mainta