AI Bubble

The term "AI Bubble" refers to a situation where the expectations of advancements and economic potential in artificial intelligence exceed the actual reality of its capabilities and applications. This can lead to speculative investments, inflated valuations, and a surge of hype surrounding AI technologies that may not materialize as anticipated. Similar to other market bubbles, such as the dot-com bubble, the AI Bubble suggests that investors and companies may pour significant resources into AI ventures based on enthusiasm rather than sustainable business models or proven technologies. Eventually, when the projected growth and advancements do not occur as expected, a correction may take place, leading to a decline in investments and market valuations in the AI sector. This term highlights the risks associated with overestimating the short-term impacts of emerging technologies and serves as a cautionary note for stakeholders in the field of artificial intelligence.