The consensus is growing that we are in an AI bubble. A bubble sounds innocuous, perhaps even reminding us of our childhood. Just like Ray in Ghostbusters thought of something that could never harm him, a bubble could turn into a menacing Stay Puft Marshmallow Man.
So what happens when the bubble bursts? For one, valuations of public companies could plummet. Companies that aren’t yet public could also fall. Investment funds available for AI would not be as free flowing as they are today.
So, the question for every business to ask themselves today is, “Are we positioned to survive outside of the AI bubble?”. Sure there will be a few AI-only companies that survive a burst, but most will fail – we saw this in the dot com boom. Focus on the fundamentals of a solid product, an economically viable business model and if you are an AI-only business, look at some diversification to provide alternative revenue streams. Google’s CEO says no tech giant is safe if the bubble bursts.
What Happens When the AI Bubble Bursts?
