Bridgewater CIOs Warn AI Poses Existential Threat to Legacy Software Firms

Bridgewater’s co-CIOs warned in an April 27, 2026 client note that AI advances like Claude Code pose existential risks to legacy software firms, driving market selloffs. The S&P 500 Software & Services Index has plunged 16.6% year-to-date, with Salesforce down ~33%, Adobe ~30%, and ServiceNow ~41%, alongside rising AI-driven layoffs. Firms must co-evolve with AI to survive, while geopolitical tensions in Iran, Venezuela, and Greenland mute Strait of Hormuz shipments, sustaining commodity shocks and inflation.