Is AI In A Bubble?
Artificial Intelligence (AI) seems to be everywhere in the news today. There is fear it could evolve into Skynet. It is likely just another marketing gimmick. Is AI in a bubble?
Artificial Intelligence (AI) seems to be everywhere. There is fear of it making Skynet or The Matrix a reality. The big tech companies are milking AI for all it is worth through marketing. The question is, is artificial intelligence in a bubble?
What Is AI?
IBM defines artificial intelligence:
“At its simplest form, artificial intelligence is a field, which combines computer science and robust datasets, to enable problem-solving. It also encompasses sub-fields of machine learning and deep learning, which are frequently mentioned in conjunction with artificial intelligence. These disciplines are comprised of AI algorithms which seek to create expert systems which make predictions or classifications based on input data.”
Outside of its technical definition in technology, “artificial intelligence” is simply a marketing term. It is added to make tech companies look better. It makes them look like they have developed a new product that will revolutionize the world for their customers.
Artificial intelligence is simply marketing to get people to buy tech companies’ stocks. It seems to be working.
Current Top AI Stocks
According to NerdWallet, the top seven AI stocks are NVDA, SYM, HLX, AI, AVAV, DT, and PATH.
The stock is expected to increase if anything has the words artificial intelligence or AI in a company report. Many investors are heading toward AI because it is the latest thing. They may not care if they are buying near or at the top for a stock because it is in AI.
AI Stock Market Bubble?
Everyone seems to be talking about AI, from the talking heads on television to the barber. That is often one of the signs to look for that something is in a bubble. Michael Hartnett, chief investment strategist at Bank of America Global Research, called artificial intelligence a “baby bubble” in May 2023.
The bubble will grow from a baby to a toddler and is on its way to becoming an angry, frothy adolescent bubble. The bubble will finally pop when it reaches adulthood and is no longer wanted by the fans since it is no longer in style. Retail investors want to find the latest cool investment and join that bubble.
Artificial intelligence is yet another bubble that is waiting to be popped. It may need a virus to destroy this particular bubble.
Is The AI Fear Overblown?
We were told there would be self-driving cars and semi-trucks. We were told that AI would take away lots of jobs. The fears seem to be overblown.
The Grammarly editing tool I use to improve my writing sometimes cannot get basic things right. Some of its recommendations change the meaning of a sentence or make a sentence make no sense. Writing would be a lower-level skill that AI is supposed to displace.
I have even played around with some AI picture generators. The picture generators that create people using AI often return weird results. A misconfigured person comes out every few photos with an extra leg or something odd.
Yet, are people expecting AI to take over sophisticated jobs? We will have to wait and see. But so far, it is not looking promising.
If it walks like a bubble and talks like a bubble. It is a bubble. A.I. is B.S. marketing.
Previous Bubbles
Other previous bubbles have included the idea of self-driving cars and semis. The fear was they would be here to take away the jobs of truckers and cab drivers. Driverless cars are being taken off of California’s roads. Other bubbles have included:
Cryptocurrency
Metaverse
Virtual Reality (VR) and Augmented reality (AR)
What are other bubbles that you remember or you can think of? Be sure to leave a comment below!
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Summary
Artificial intelligence has all the signs of a stock market bubble. You are beginning to see and hear the words AI everywhere. Even people not invested in the stock market and non-tech people are familiar with the term. The marketing strategy works as more people want to join the bubble.
Can you think of other past bubbles, hysterias, and manias that drove people into the stock market or to buy something because it was “cool”? Let us know in the comments below!
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Views expressed in this article are opinions of the author and do not necessarily reflect the views of Secure Single. Nothing in this article is financial advice. Always speak to a financial professional before making any financial decisions. It is intended for informational and educational purposes only. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback on Amazon.
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Yes, I watched it. Great video.
Great thoughts here. AI can't do a single thing without my input. Substack and Medium have an option to not allow your content to be fed into AI. Thanks!