Artificial Intelligence (AI) has undeniably reshaped both the industrial and consumer sectors. Recent estimates suggest that more than $37 billion was invested into AI startups in 2025 alone. However, the rapid growth and hype around the technology have led to increased concerns about the potential for an AI bubble.
The ‘AI bubble,’ similar to the ‘dot com bubble’ of the late 1990s, refers to an economic cycle characterised by the rapid escalation and then sudden collapse of tech stocks. The danger lies in the significant downsides that it poses for startups, investors, and the economy at large.
Experts argue that inflated valuations of AI companies, driven by speculation rather than actual value, could lead to destructive economic effects. The high failure rates in tech industry coupled with speculative investments increase the risk of a bubble, and yet, this continues to be an overlooked issue.
Acknowledging the potentials and pitfalls of AI is crucial. Investors, policymakers and the public need to be aware of the risks involved in AI investments and aim for more sustainable growth models. The future of technology and our economy may very well depend on it. Read More
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