As stated by Jim Cramer of CNBC, on Tuesday, the artificial intelligence industry is losing the battle for public perception.

"Culture has shifted to oppose these people, these products, and the supporters are caught off guard," said the host of "Mad Money." He added, "Wall Street is losing the battle of narrative, and in the end, various stocks could be affected as a result."

This emotional fluctuation occurs during difficult times in the market. U.S. Treasury yields continue to climb to multi-year highs, while more than half of the stocks in the S&P 500 index are trading below their 200-day moving averages, indicating that these stocks are in a downward trend; there are also 204 stocks in the index that are at least 20% below their 52-week highs.

In a market that is already highly concentrated, Cramer is concerned that changes in public attitude towards AI could suppress one of Wall Street's biggest drivers of growth and an important source of economic growth for the United States as a whole. Concerns regarding employment, electricity costs, and security are increasingly competing with the industry's promises of economic growth and productivity improvements. Since this year is a midterm election year, both the Democratic and Republican parties are vying for control of Congress, adding political weight to this issue.

"18 months ago, people might have said that these executives were creating tens of thousands of jobs and building data centers," Cramer said, "but now we wonder, how much did they raise electricity prices? How much water did they pollute? How many towns were affected negatively?"

The warnings from leading AI developers about the risks of more powerful models only serve to complicate information dissemination in this industry. Cramer mentioned a leaked version of a Anthropic IPO prospectus obtained by Reuters, which warned that their AI models could pose “catastrophic or existential risks” to humanity. He also noted that OpenAI has postponed the launch of its next-generation model ChatGPT 6.1 Astra due to security concerns.

"I'm not an apocalypticist," said Cramer, "you know I have a constructive attitude towards AI, but these companies must start telling better stories."

Taking Meta as an example, Cramer explains how to change the narrative. He said that he appreciates how the company emphasizes how its data centers limit their impact on local electricity prices and supports the communities where they invest. He also praised Meta's new Muse AI agent, which includes a version designed to help small business owners automate administrative tasks. The portfolio managed by CNBC Investing Club holds Meta stocks.

“Muse of Meta is probably the new tool I’ve heard of in recent years that is most suitable for promoting the scaling of small businesses,” said Cramer.

Unless the entire industry demonstrates more of the actual benefits of AI, Cramer is concerned that worsening public sentiment may become another obstacle to an already fragile market. "It doesn't have to be this way," he said, "but this is the new narrative, and it will be very difficult to reverse."

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