"We better all hope claims of an AI "bubble" don't come to fruition, because we're all going to suffer if it eventually bursts. That's according to Google CEO Sundar Pichai, who told the in an interview that there was "irrationality" in the AI hype that could impact every company. "I think no company is going to be immune, including us," he told the BBC, though he stressed Alphabet and Google were in a good position to withstand any potential market shocks."
"Pichai compared the hype and investment around AI to the early days of the web, admitting there was "excess investment", but adding that the impact of the internet was worth the costs. "I expect AI to be the same. So I think it's both rational and there are elements of irrationality through a moment like this." While concerns still linger over the long-term return on investment from AI adoption, this hasn't stopped big tech companies committing to bold spending plans over the next decade."
Claims of an AI investment bubble could harm every company if it bursts, reflecting elements of irrationality amid heavy hype and spending. Current AI investment resembles early web excesses, with some overinvestment accepted because of anticipated long-term transformative impact. No company is immune to potential market shocks, though large firms such as Alphabet and Google are relatively well positioned to withstand disruptions. AI systems remain prone to errors, so users should not blindly trust outputs despite efforts to improve accuracy. Rising data center energy demand poses a long-term challenge and will require supply solutions to avoid constraining the economy.
Read at IT Pro
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