Markets shift faster than most people expect, and few investors are as blunt about it as Kevin O'Leary. In interviews and on social media, he's repeatedly warned that entire categories of businesses may not survive the next 10 years if they fail to adapt.
For workers, investors, and small business owners, that matters. Understanding where the risks are now could help you prepare yourself financially and avoid getting caught in a declining industry. Here are the types of businesses O'Leary believes are most at risk.
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Traditional office space and commercial real estate
O'Leary has been especially bearish on office buildings, arguing that the shift to hybrid work isn't temporary. He's warned that many properties "cannot be used again as office space because the economy has changed," pointing to vacancy rates as high as 40% in some cities.
The core issue is demand. Fewer workers commuting daily means less need for centralized office space. Without a major reversal, landlords may struggle to fill buildings, refinance debt, or justify valuations, putting long-term pressure on the sector.
Businesses that ignore artificial intelligence
O'Leary has made it clear: AI adoption is no longer optional. He's said plainly that AI "isn't optional anymore," adding that companies not using it are "already behind." He sees AI as a baseline, not as a trend.
From automating workflows to improving customer targeting, AI is becoming a cost and efficiency advantage. Businesses that resist it could find themselves outpaced on both margins and innovation, a combination that rarely ends well over a decade.
Brick-and-mortar restaurants in urban centers
Restaurants have always been a bit of a tough business. However, O'Leary believes that the environment has fundamentally changed. He's noted that "customers haven't returned" to pre-pandemic patterns, especially in downtown areas where office traffic is also low.
At the same time, rising food and labor costs (what he called an "inflation virus") are squeezing margins. Restaurants that rely heavily on lunch crowds or high foot traffic may face ongoing challenges unless they adapt their model.
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Companies forcing full-time office work
O'Leary has been blunt here: "cubicles are dead." He argues that forcing employees back into rigid office environments could backfire, especially for high-skill roles.
According to his view, top talent already embraces flexibility. Companies insisting on full-time office work might limit their hiring pool and end up with less competitive teams. Over time, that talent gap could weaken performance and growth.
Movie and production businesses reliant on traditional extras
Even the entertainment industry isn't immune. O'Leary has pointed to film production costs, noting that scenes with large numbers of extras can cost millions and suggesting AI could replace much of that need. He pointed to the movie Marty Supreme, specifically, stating: "Almost every scene had as many as 150 extras... it costs millions of dollars to do that."
His broader point is about efficiency. When technology can replicate something at a fraction of the cost, industries built around the old model may have to adapt quickly. Otherwise, they risk being undercut by competitors using cheaper, faster alternatives.
Speculative crypto token projects
O'Leary has been especially skeptical of smaller crypto projects, warning that many tokens lack real utility. In his view, a large portion of them could "eventually just go to zero."
That doesn't mean he's against crypto entirely, but he draws a clear line between established assets and speculative ones. Projects without strong use cases or adoption may struggle to survive as the market matures and investors become more selective.
Businesses heavily dependent on China-based supply chains
Geopolitics is another risk O'Leary has flagged. He's argued that tariffs on China should be dramatically higher, saying current measures "are not enough" and criticizing how trade relationships are structured. He's found that many businesses in China "never abided by any of the rules they agreed to." Furthermore, O'Leary explained that he "can't litigate in their courts."
For businesses, that introduces uncertainty. Companies that rely heavily on overseas manufacturing in sensitive regions could face rising costs and disruptions.
Businesses with weak cash flow discipline
If there's one theme O'Leary returns to constantly, it's discipline. He's warned that even profitable companies can fail if they don't manage cash carefully. He's explained that cash flow provides flexibility. He recommends business owners "stay flexible, pivot, and preserve cash until you know the real velocity of your business."
It's a simple idea, but an important one. Growth, branding, and even profitability don't matter if a company can't manage its day-to-day finances. Over time, poor cash control can quietly undo an otherwise strong business.
Bottom line
The common thread in Kevin O'Leary's warnings is simple: businesses that fail to adapt, whether to technology or cost pressures, may not disappear overnight, but they can steadily decline over time. That kind of slow erosion can be easy to miss until it starts affecting jobs or entire industries.
A practical takeaway is to look beyond headlines and evaluate where your income or investments are exposed. Many of these risks tie back to ways even smart people waste money, like staying in declining sectors too long or ignoring structural changes. Focusing on adaptable companies and strong cash flow could help you keep more cash in your wallet over the long run.
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