BCA Research predicts artificial intelligence will dismantle tech monopolies by undermining economies of scale, network effects, and proprietary offerings that have generated strong profits. The strategist Peter Berezin warns AI simultaneously increases infrastructure costs while reducing what firms can charge for software.

Hyperscalers face a massive shift as they spend $670 billion on AI infrastructure in 2026, transforming from capital lite to capital heavy models. Open-source toolkits prevent any single company from establishing monopoly power through proprietary technology.

The research warns this disruption could push the economy into a mild recession given tech stocks' prevalence in the S&P 500. BCA recommends a rotation trade: Big Tech stocks falling while bonds rise, average stocks outperforming tech giants, and buying precious metals.