It seems the AI hype has turned into an AI bubble. There have been many bubbles before, from the Tulip mania of the 17th century to the derivatives bubble of the 21st century. For many commentators, the most relevant precedent today is the dotcom bubble of the 1990s. Back then, a new technology (the World Wide Web) unleashed a wave of “irrational exuberance”. Investors poured billions into any company with “.com” in the name.
Three decades later, another new technology has unleashed another wave of exuberance. Investors are pouring billions into any company with “AI” in its name. But there is a crucial difference between these two bubbles, which isn’t always recognised. The World Wide Web existed. It was real. General Artificial Intelligence does not exist, and no one knows if or when it ever will.
