
I’m not a financial expert, but I have noticed a significant number of articles in the media suggesting that the Generative AI industry is a bubble waiting to burst. There are recent pieces here on the BBC website, here in the Financial Times (from which I stole the cartoon), and here in the Irish Times, to name but a few.
These stories are based on reports by the Bank of England and the International Monetary Fund, warning of a stock market crash far worse than the dotcom boom-and-bust of 2000 and even the banking crisis of 2008. Over 30% of the valuation of the US stock market, for example, lies in five big technology companies that are investing heavily in the enormous infrastructure required for AI. Their extravagant capital expenditure is underpinned by a complex series of financial arrangements which could unravel very quickly if the investors get cold feet and consider it unlikely they will see a return on their money. It does look very much like a bubble to me.
My own view is that the claims made about the capabilities of AI by tech gurus are grossly overstated. Only the irredeemably gullible could think otherwise. I think a correction is inevitable. It’s not a question of “if” but “when” and “how much”. I am not competent to answer those questions.
P.S. Now there’s an RTÉ Brainstorm piece along the same lines…







