[verbify]

The article claims that:

a) AI is a bubble

b) It's about to burst

This is based on a study that "just 5pc of integrated AI pilots are extracting millions in value, while the vast majority remain stuck with no measurable P&L [profit and loss] impact".

I think the conclusions (while possibly true) are not supported here. By comparison, in the stock market in general, just a handful of stocks provide most of the returns over the past few decades. This does not mean the stock market is a bubble or about to burst.

[Cheer2171]

You have LinkedIn lunatics saying exactly this for years, AI startups are a money printer, that we're months away from AGI that gives drop in 1000x (or even infinite asymptotic) return. Adding 'AI' to your name bumps your valuation even if it is Actually Indians behind the scenes. THAT bubble needs to burst.

[drdaeman]

Article talks about "AI" as a buzzword. My understanding is that "AI" here means something much more closer to "market virtue signalling" when every product now has "AI", rather than "cutting-edge ML research".

It's the kind of "AI" I see when I walk by the TVs at Costco and see that every box that used to feature the word "smart" now has "AI" prominently written on it, even though in practice no one knows for sure what it possibly means or does. In this sense - sense of companies slapping "AI" (whatever it means to them) for the sake of having "AI" looks like a bubble/fad/hype.

I have no idea about any possible economical outcomes of that hype declining (for a better term than "bubble" "bursting"), but I'm skeptical it's gonna be anything huge. My whole life I've seen endless examples of companies realizing their "hot topic" marketing strategy stopped working (or never worked at all) and they just pivot for different strategies without any severe impacts. As long, of course, as the company had actually useful product and the issue was merely with the marketing.

[abullinan]

The stock market has been a bubble since the 90’s but the bursts have been minimal because the elite class uses the stock market to extract wealth from normal people. Once they find something new (enshittification) they will suck all the value out of the market and leave its husk to peasants and their meager 401ks (if they even have that). I say this because there are so many millionaires in the US, and we can’t have too many people with extra wealth or it ruins things for the elite. The 0.01% must extract every penny from the 10%, too. It used to be every millionaire felt entitled to be a billionaire, but now centibillionaires feel entitled to be trillionaires and who do you think that money is stolen from?