While artificial intelligence continues to keep investors on the edge with advocates and skeptics at opposite extremes, Aswath Damodaran, widely known as the ‘Dean of Valuation’, highlighted that revolutionary change has been a constant through human existence and follows a cycle.
In his long blog post, Damodaran said the debate about AI has gone off the track with advocates and skeptics often talking past each other, with advocates focusing on its the technology’s alleged massive potential market, and skeptics zeroing in on massive upfront investments as too large. While the valuation expert does not attempt to prove any of the sides wrong, he attempted to move the discussion towards examining AI as a business, recognising that it is ground breaking, while also acknowledging that it has to be judged like every other business in history.
