“The AI bubble is just another layer of uncertainty. Six months from now, we could be facing an entirely new set of circumstances,” said Brian Jackson, a principal research director at Info-Tech Research Group. “There might be way too many major players trying to divvy up this pie. The AI business model today is a highly subsidized one.”
There are steps that IT leaders can take to protect their organizations, but the question remains: Protect them from what exactly? No one knows when the AI bubble will burst — or even if it will — but far more importantly, it’s unknown what shape such a bubble burst is likely to take.
About the only thing that seems relatively certain is the cause of the potential AI bubble burst. It’s identical to what triggered the dot-com implosion in the summer of 2000: untenable business plans backed by VCs and other investors propping up businesses with no meaningful or near-term path to strong profitability.
The dot-com blowup didn’t actually destroy e-commerce. On the contrary, as we sit here 25 years later, e-commerce businesses are doing quite fine. What went away was a lengthy list of smaller players who should not have gotten funding in the first place. READ MORE...
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