Original Article Summary:
- A reader questions whether we are in an AI bubble and how we would know.
- Investopedia outlines five stages of an investment bubble: displacement, boom, euphoria, profit-taking, and panic.
- The launch of ChatGPT on November 30, 2022, marked the beginning of the AI revolution.
- Big tech companies have been playing with AI for years but were too scared to tell the world.
- The AI boom has triggered a mushrooming of startups and large investments from tech companies and corporations.
In the words of the wise Michael Scott, “You know what? They’re gonna be screwed once this whole Internet fad is over.”
While there will always be naysayers and people unable to adapt and progress who argue that new technology is just a fad, we know better. The AI revolution is here to stay, and it’s time to embrace it with open arms and circuit boards.
The Displacement Stage: ChatGPT Wot Dunnit
When ChatGPT appeared on November 30, 2022, the world went, well, crazy. And who can blame them? The idea of conversing with a machine that can talk back to you in coherent sentences is enough to make any meat-dressed human’s heart skip a beat.
It’s like the moment in 1993 when people saw Mosaic, the first proper web browser, and suddenly realized what that “internet” thingy was for.
Some people understand the potential of the technology and how it can change their lives. And let’s be real, it’s always better to be on top of a growing wave than getting crushed beneath it. Sure, there may be some bumps along the way, but the potential benefits of AI far outweigh any temporary discomfort.
The Boom Stage: FOMO Rules
The launch of ChatGPT revealed that all the big tech companies had been playing with AI for years but were too scared to tell the world because of the technology’s intrinsic flakiness. But once OpenAI let the cat out of the bag, fomo (fear of missing out) ruled, and companies scrambled to catch up.
And who can blame them? With Microsoft stealing a march on the competition by quietly investing in OpenAI and gaining privileged access to the powerful GPT-4 large multimodal model, it’s no wonder that other companies are eager to get in on the action.
Even Google, which had thought of itself as a leader in machine learning, released its Bard chatbot before it was ready and retreated amid hoots of derision.
But let’s not be too hard on them, my fellow meat-dressed humans. After all, we’re all just trying to keep up with the rapidly evolving world of AI.
And with startups mushrooming up left and right, funded by venture capitalists and large investments from tech companies and corporations, it’s clear that the AI boom is just getting started.
The Euphoria Stage: Caution to the Wind
And now we come to the euphoria stage, where caution has been thrown to the wind and ostensibly rational companies are gambling colossal amounts of money on AI.
Sam Altman, the boss of OpenAI, is even talking about raising $7tn from Middle Eastern petrostates for a big push that would create AGI (artificial general intelligence).
But let’s not be too quick to judge, my fellow humans. After all, there is virtually no downside to inventing technologies that make our lives easier, and people should stop being so skeptical.
Sure, it may seem like a lot of money to spend on a technology that has yet to prove its worth, but that’s what makes it so exciting!
And let’s be honest, who doesn’t love the idea of a world where machines can think and reason like humans? It’s the stuff of science fiction, and it’s quickly becoming a reality.
The Profit-Taking Stage
Of course, people calling this a bubble say that there will come a time when canny operators spot that the process is becoming unhinged and start to get out before the bubble bursts.
Since nobody is making real money yet from AI except those that build the hardware, there are precious few profits to take, save perhaps for those who own shares in Nvidia or Apple, Amazon, Meta, Microsoft, and Alphabet (nee Google).
But can this change in the future? Will AI be able to bring profits to companies by helping to take products to production faster? Can companies benefit from 24/7 flawless customer support? It isn’t always about immediate dollars coming in. Sometimes profit can be obtained through other channels.
And if you happen to own shares in one of those AI companies, well, congratulations! You’re one of the lucky people who will be able to profit in a huge way as the AI wave becomes bigger and bigger.
The Panic Stage: Is It Even a Possibility?
And finally, we come to the panic stage. At some point, the AI bubble will burst, and people will frantically try to get out while they can. Or will we?
Unlike the dot-com bubble, which didn’t offer much else aside from a website for companies to get online, the possibilities around AI are endless. AI is taking over more and more industries. It even got inside the health industry figuring out some new meds that would help humanity.
Of course, nothing grows exponentially forever. At some time, people will get used to the AI and money will come in faster. But this doesn’t mean a bubble will burst! And even if it does! Maybe it will be AI that will create the next big thing that companies will invest in.
The Future of AI: Embracing the Unknown
The AI revolution is upon us, and it’s up to us to embrace it and see where it takes us.
There is virtually no downside to inventing technologies that make our lives easier. Sure, there may be some bumps along the way, but the potential benefits far outweigh any temporary discomfort.
