Who wins when the Magnificent 7 squares off against the anxious parent?

The promise of AI may be driving large-cap technology stocks higher, but advisors are finding more of their clients privately worrying about how those same innovative forces might affect their children’s long‑term job security - and their estate plans.

On one hand, the so-called Magnificent Seven, a group of large‑cap AI‑infrastructure leaders and automation‑driven companies, remain foundational holdings for many private clients seeking growth. These core companies still comprise about a third of the benchmark S&P 500.

On the other hand, the unemployment rate for recent college graduates has been on the rise, reaching 9.7% in September before falling back to a still heady 5.5% last month, according to the Federal Reserve. As a result, a quiet but real tension between portfolio strategy and parental anxiety continues to brew.

So who wins when the Magnificent 7 squares off against the anxious parent?

Lexie Head, founder and managing partner at Mercer Wealth Management, a Sanctuary Wealth partner firm, says clients with young adult children are indeed increasingly focused on the job market, though the concern isn’t solely tied to artificial intelligence. She says her conversations often center on practical support, such as using AI for resume development, career research, and skill-building.

Across all those client conversations, however, she acknowledges the potential for “near-term job displacement,” but emphasizes that innovation historically creates new industries and opportunities over time.

“Periods of rapid change always generate anxiety, and recent headlines around AI spending and earnings have amplified those fears. After several years of outsized market performance led by mega-cap tech, comparisons to past bubbles are understandable,” Head said.

However, she adds that this cycle remains in its early stages, supported by stronger fundamentals and a broadening market, signals that “differ meaningfully from late-stage bubble dynamics.”

Manav Shah, portfolio manager at 49 Financial, is also seeing increasing anxiety across the board as entry-level roles become more difficult to obtain. Unemployment among new degree holders continues to rise, which is clear evidence that the job market and employer demands are shifting, according to Shah.

That said, Shah believes that technological disruption of this nature is “not new” and things will work themselves out, as they always do.

“The U.S. economy, for instance, shifted from being driven primarily by labor-intensive industries to a service-based model, requiring workers to develop new capabilities. For example, the rise of computers and the internet eliminated some positions, but over time people adapted by building specialized skills, retraining, and returning to the workforce in competitive roles at higher salaries,” Shah said.

The broader takeaway, says Shah, is that practical skills tend to carry more weight than college diplomas alone, and choosing educational pathways that reflect changing labor market needs is a good first step to combating an evolving environment.

Josh Strange, president and founder of Good Life Nova, nonetheless, has not had clients express widespread concern about AI and the impact it will have on the next generation and job futures. At least not yet.

“We do think it is important to diversify holdings especially for those employed in the tech sector or who have children employed in the tech sector that could be impacted by AI,” Strange said.

AI CONCERNS AND ESTATE PLANNING

As to whether this increased anxiety over AI and future employment is influencing estate planning or gifting strategies, Mercer’s Head says she is witnessing more proactive intergenerational support, particularly during early adulthood. Clients across the wealth spectrum are using annual gifting to help with living expenses, housing, and career transitions, according to Head.

“Rather than signaling financial stress, these strategies reflect a desire to provide flexibility, whether for retraining, entrepreneurship, or navigating a more complex early-career landscape,” Head said. 

Meanwhile, 49 Financial’s Shah notes that periods of uncertainty such as the Global Financial Crisis also fuel innovation, giving rise to newly-formed companies that are now industry leaders, as more individuals turned to entrepreneurship during that time.

“Affluent families are adjusting estate and gifting strategies to reflect a less predictable career landscape favoring discretionary trusts, staggered distributions, and stable income generation through diversified dividend oriented portfolios and annuities,” Shah said.

Rory O’Hara, founder and senior managing partner of Ausperity Private Wealth, for one, is seeing clients take a more “hands-on approach.” Instead of just focusing on tax efficiency, they are using their wealth more intentionally — helping fund additional education, backing a child’s business idea with structure around it, or building trusts that encourage productivity and purpose.

“The conversation has shifted from simply passing down assets to passing down values and accountability,” O’Hara said.

Finally, Good Life Nova’s Strange stresses that it is important to help clients and their children understand that the future will likely look different from an economic perspective, and, as a result, they may need to adjust accordingly, especially when it comes to career choices and college.

“There will always be demand for skilled workers it just may be in different fields and AI and all the associated downstream effects are just another leg in the wheel of human and technological progress. So as always staying calm and thinking rationally is critically important,” Strange said.