This article discusses the nature of AI as a bubble and compares it to other economic bubbles such as the dotcom bubble and the crypto bubble. While some bubbles leave behind valuable assets and knowledge, others leave behind nothing but ashes. The author questions whether AI will leave behind something useful or disappear altogether once the bubble pops. They examine the costs of running large-scale AI projects and the potential for high-risk, high-value AI applications. Ultimately, the author highlights the potential risks and blind spots associated with the AI bubble and the need for policymakers to consider the consequences of its collapse.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| AI as a bubble | From hype to potential burst | Potential salvage and usefulness vs. complete disappearance | Economic viability, profit potential, and technological capabilities |