RIME, previously operating as a karaoke services company, released a press release unveiling its new AI-powered logistics platform designed to streamline shipment routing and supply chain management. This strategic pivot marks RIME’s entry into the transportation technology sector, leveraging machine learning to optimize middle-mile operations and reduce costs.

Following RIME’s announcement, short sellers targeted major transport providers, driving shares of Expeditor, Landstar and RXO down by more than 10% over a five-day period. Investors questioned the valuations of established logistics firms as fears mounted that AI could commoditize traditional freight brokerage services.

The AI scare trade spread to asset managers, with fee-driven firms such as LPL Financial, Schwab, Raymond James and Morgan Stanley experiencing 5-8% pullbacks as markets grappled with the potential for AI to automate advisory roles. Analysts warn that sustained uncertainty around AI integration could pressure advisory revenue and fee structures across the wealth management industry.