Artificial intelligence continues to dominate global equity markets, but Goldman Sachs believes investors should not overlook opportunities beyond the AI ecosystem. In a recent investment strategy report, the firm’s analysts identified a group of companies focused on physical consumer experiences as an attractive long-term theme. The strategy reflects a growing recognition that while AI is transforming digital industries, many businesses built around travel, hospitality, entertainment, and leisure continue to benefit from structural demand that technology cannot easily replace. For investors seeking diversification, these sectors may offer compelling growth potential alongside more reasonable valuations than many AI-related stocks.

Physical Experiences Offer a Different Growth Story

Goldman Sachs screened companies whose businesses depend on in-person participation, including operators in the movie and entertainment industry, hotels, resorts, cruise lines, casinos, gaming, and specialized leisure services. The investment bank selected 36 companies with market capitalizations exceeding $2 billion that generate the majority of their revenue from physical consumer experiences.

The firm’s central argument is that these businesses remain relatively insulated from direct AI disruption. While artificial intelligence can automate digital workflows, improve customer service, or optimize operations, it cannot replace the core value proposition of attending a concert, taking a vacation, visiting a theme park, or participating in live sporting events.

This distinction creates a unique investment opportunity as consumer demand for memorable experiences continues to recover and expand globally.

Valuations and Consumer Spending Support the Theme

Beyond reduced disruption risk, Goldman Sachs points to attractive valuations across many experience-driven businesses. While AI-related companies have experienced substantial multiple expansion over the past several years, numerous hospitality and leisure companies continue trading at comparatively moderate earnings multiples despite improving operating performance.

The investment case also reflects changing consumer behavior. Many households continue prioritizing discretionary spending on travel, entertainment, and experiences over physical goods, a trend that accelerated following the pandemic and has remained resilient despite broader economic uncertainty.

Strong pricing power, international tourism recovery, and improving occupancy rates have also supported earnings across several industries included in Goldman Sachs’ screening process.

Diversification Matters in an AI-Dominated Market

The rapid pace of AI innovation has reshaped investor expectations, making technology stocks the primary drivers of market performance. However, as increasingly capable AI models emerge worldwide and competition intensifies, some investors are beginning to diversify into sectors whose growth depends on consumer behavior rather than technological disruption.

Consumer experience businesses offer exposure to demographic trends, rising disposable income, and global tourism while reducing direct dependence on the rapidly evolving AI competitive landscape. Although these companies remain sensitive to economic cycles and consumer confidence, their underlying business models are generally less vulnerable to technological displacement.

For portfolio managers, the strategy highlights the importance of balancing exposure between transformational technologies and industries supported by enduring human preferences that remain difficult to digitize.

Looking ahead, investors will continue monitoring consumer spending, global travel demand, inflation, and discretionary income as key drivers for experience-oriented businesses. While artificial intelligence is likely to remain one of the market’s dominant long-term themes, Goldman Sachs’ strategy suggests that opportunities outside the AI ecosystem may provide attractive diversification, stable earnings growth, and compelling valuations for investors seeking broader market exposure.