Hedge funds have taken record short positions on US stocks as artificial intelligence concerns rattled markets, according to Goldman Sachs. The surge in bearish bets comes as investors grapple with how AI might disrupt established business models across multiple sectors. Market volatility has intensified as fund managers seek protection against potential downside risks.

Goldman's data shows hedge funds are positioning for a market correction, with short interest reaching unprecedented levels. The AI disruption narrative has gained traction, prompting aggressive hedging strategies among institutional investors. Technology and industrial sectors appear particularly vulnerable to AI-driven business model changes, according to market analysts.

The record short positioning signals growing unease about equity valuations and future earnings growth. Hedge funds are betting that AI's impact on productivity and competition will pressure profit margins across industries. This defensive positioning could amplify market declines if economic data or corporate earnings disappoint in coming months.