Rob Arnott is impressed by AI chatbots but skeptical about AI stocks due to competition, unclear monetization paths, and high valuations. He favors small-cap value and emerging market value stocks over expensive AI stocks. While he acknowledges the potential of AI technology, he believes that future upside is already priced into AI stocks, making him cautious about investing in them. Arnott points to growing competition in the industry and a lack of clear monetization strategies for customers as reasons for his skepticism. He sees better opportunities in small-cap value and emerging market value stocks, which he considers to be undervalued compared to expensive AI stocks.

Read more at Yahoo Finance: Investing legend Rob Arnott says the S&P 500 is concerningly expensive. Here are 2 areas of the market where he’s looking for bargains.