The vast majority of people seriously talking about this subject seem to agree that we’ll likely see the bubble bursting, but that of course doesn’t mean AI as a technology will go away. Just the clients’ willingness to spend money on it; that will likely go away. And with it businesses that made themselves over-reliant on said clients spending money on AI products and services.
I dunno. I'm still waiting for the recession economists promised us three or four years ago. Market predictions have a piss-poor track record.
There will be some pullback. We've already been seeing it in tech sector investment for several months now. It seems to be less about disillusionment with AI than with uncertainty and fear about which industries are going be gobbled up first by AI innovation, with software companies as favorite candidates to fall due to disintermediation. The other big concern is a shrinking job market and the impact that will have on the consumer economy.
People talk about an "AI bubble" as analogous to the 2001 dot-com bubble. That is not likely to reoccur here. And the most important takeaway from that market reset is that, a quarter of a century later, the technologies at the center of it now dominate modern culture.
Might as well talk about the "steam-engine bubble."
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