Is the AI Bubble About to Burst?
China Tightens Its Grip on Namibia's Next Energy Boom Felicity Bradstock is a writer and journalist based in Mexico City.
She writes for energy websites and covers several other industries, as well as writing… Artificial Intelligence has grown in popularity over the past five years, from something consumers only knew from sci-fi movies to a widely used technology.
Many companies are now using AI in some form, and it has become part of everyday life for many consumers, with AI services integrated into internet search engines, phone applications, and other daily interactions.
However, as AI is deployed at a faster pace, it is becoming clear that the technology cannot be used as extensively as tech companies had hoped, while companies are realising the value of human workers.
Investors have rushed to buy tech stocks on New York stock market indexes, such as the S&P 500 and the tech-heavy Nasdaq, in recent years, as more companies launch AI services.
Just seven companies, Amazon, Alphabet (Google), Nvidia, Meta (Facebook), Microsoft, Apple, and Tesla, have dominated this focus.
An increasing number of City analysts and financial economists are now warning that the AI bubble will eventually burst.
Jeremy Grantham, the founder and investment adviser at a large asset manager, said he planned to sell his tech shares as he expected the AI bubble to burst soon.
Granthamsaidthat AI was similar to the invention of railways or the internet in that everyone overinvests and, when they realise it is a utility, such as electricity, they understand that there is not much money to be made from the invention itself, except for the companies that build services around it.
Companies and consumers have been wowed by the capabilities of AI technologies, which appear increasingly intelligent.
More and more companies are investing in integrating AI services into their operations, while consumers are using AI for basic, everyday tasks, such as internet searches.
However, as AI booms, users are slowly losing confidence in certain services, as it becomes clear that there are limits to AI’s “intelligence” or human-like capabilities.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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