Howard Marks, co-founder of Oaktree Capital Management, cautioned investors about underestimating the impact of artificial intelligence (AI) during a New York capital markets conference. Marks highlighted AI's inherent unpredictability, suggesting that traditional investment strategies based on future predictions may no longer suffice. He pointed to Block's recent layoff of 4,000 employees as evidence of AI's disruptive potential. Marks advised investors to favor equity over debt in AI-related companies, arguing that those bearing the risks of AI's evolving business models should benefit as owners. He also expressed concerns about transparency in private markets amid AI's rise, drawing parallels to past technology bubbles where new innovations were marketed without fully understanding their risks.