Milken Institute Conference 2026: Elite Optimism on AI and Markets Amid Geopolitical Tensions

The 2026 Milken Institute Global Conference gathered leading investors, CEOs, and political figures to discuss artificial intelligence, technology investment, and market outlook. Panelists addressed AI’s potential, the ongoing war affecting the Strait of Hormuz, and capital-allocation strategies.

The American Prospect

Participants framed AI as a transformative profit driver while downplaying the war that has blocked the Strait of Hormuz, a critical route for energy and semiconductor components. U.S. data show the richest 10 percent own 93 percent of publicly traded stocks, concentrating purchasing power among shareholders.

The American Prospect

• Wealthiest 10 % own 93 % of publicly traded U.S. stocks (Federal Reserve, 2024).

The American Prospect

• The Dow Jones Industrial Average rose despite two months of war and the Strait of Hormuz blockage.

The American Prospect

• No specific AI investment returns were disclosed.

The American Prospect

Conference organizers, led by Michael Milken, presented AI’s diagnostic accuracy claim as evidence of transformative potential. Larry Fink urged shifting retirement assets into AI-focused funds, calling traditional bank accounts a poor financial choice. Bruce Flatt emphasized selling savers on handing over their money. Ken Griffin asserted the United States is “shielded” from energy price spikes due to fracking, while acknowledging that developing nations cannot absorb an energy shock.

The American Prospect

Jefferies’ managing director warned that most AI pitches lack substance, questioning the sector’s readiness for investment. Alan Tannenbaum of BMO Capital Markets noted the difficulty of picking AI winners and suggested focusing on established sectors such as construction, energy, and metals. The skepticism contrasted with the conference’s overall optimism.

The American Prospect

Panelists diverge on AI’s near-term market viability; some endorse investment while others caution against premature bets. The economic impact of the Strait of Hormuz conflict remains uncertain, with no consensus on the magnitude of a potential global recession.

The American Prospect

• “Having your money in a bank account is one of the worst financial decisions of a lifetime.” — Larry Fink, CEO, BlackRock

The American Prospect

• “Most people who pitch me on it don’t know what they’re talking about,” — Managing Director, Jefferies

The American Prospect

• “We can withstand the energy shock. Many other developing nations cannot. That risks materially reducing global GDP and will have knock-on effects if the stalemate persists.” — Ken Griffin, CEO, Citadel

The American Prospect

• “but the biggest issue for people are whether they can pay their bills.” — Glenn Youngkin, former Governor of Virginia

The American Prospect

• “Milken himself, who was moderating, stepped up to tout with thin evidence that AI had four times the accuracy on medical diagnoses as human doctors.” — Michael Milken, Founder, Milken Institute

The American Prospect

Investors are likely to keep directing capital toward AI and established sectors while watching developments in the Strait of Hormuz. Conservative antitrust litigation, exemplified by Ashley Keller’s case against Google in the ad-tech market, may introduce regulatory scrutiny that could affect technology valuations.

The American Prospect