If nothing else, Capitalism is about volatility. We’re all accustomed to periodic recessions; some even remember the Great Depression. But that volatility can be localized in industries as well. We call these “bubbles.”
The first was in the 1600a in Holland and involved mindless speculation in tulips. Subsequent bubbles were no less chaotic, but ultimately had some economic rationale to them and birthed great enterprises bringing profound changes in how we live…Examples of such earlier bubbles include the railroads, auto industry and recently dot.com bust almost 25 years ago.
The next bubble may soon be upon us. Over the past two years our focus has been on using AI; Dr. Galloway in his recent post in his “No Mercy, No Malice” blog focuses on the business and financial dynamics of AI. The market value of these companies has increased by billions, in a few cases trillions…and Dr. Galloway warns it will inevitably reverse.
He writes “There are two important questions regarding AI, and neither is ‘are we in a bubble?’ We are. The important questions are ‘when will it pop’ and who will endure?’ “
His post, “Bubble.AI” is required reading for anyone involved in artificial intelligence…and I suppose that means nearly everyone.
