Why the A.I. Boom Is Unlike the Dot-Com BoomnnIn the late 90s, the world witnessed a dot-com boom, followed swiftly by a dramatic bust. Two decades later, the surge in artificial intelligence (A.I.) startups has drawn parallels with the infamous dot-com era. But there are key differences that set the current A.I. boom apart.nnThe first dissimilarity lies fundamentally in the technology itself. A.I. is far more pervasive and formative, creating tangible value across various sectors. From healthcare to agriculture, AI is helping solve complex problems and facilitating decision making.
nUnlike the Dot-Com spurt supported primarily by optimism and speculation, the AI boom bears substance. It is backed by robust and tangible achievements stretching across sectors and industries.nnMoreover, the financing landscape is more sustainable now. The Dot-Com Bubble was spurred by easy and rampant capital flooding in, causing an overvaluation of virtually unproven entities. Today, with stricter financing environments and an emphasis on business models and profitability, we are better shielded.nnThus, while the A.I. boom and the dot-com boom bear surface-level similarities, the undercurrents are decidedly different, making the AI evolution much more resilient and transformative.
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