After the AI Crash
The author speculates on the potential for an 'AI crash' similar to the 2000 dot-com bubble, suggesting that while the technology itself will survive, many current startups may fail. The piece argues that a market correction could ultimately lead to more efficient and sustainable AI development.
Why it matters
Understanding market cycles in emerging technology helps investors and industry observers anticipate potential volatility in the AI sector.
Everything I read about the AI industry leads me to think there will be an AI crash. Consider the following:
I don’t have a crystal ball to foresee the nature of the crash. It could be a total crash like the 2000 tech crash, where four out of five tech startups disappeared practically overnight. I lived in the DC area at the time, and I will never forget the rows of abandoned CLEC headquarters buildings in Northern Virginia. A crash could be milder, where a few firms disappear, with the outlooks for the survivors greatly diminished, and industry expectations are reset to something more realistic.
The reason I wrote the blog is to speculate about what happens after an AI crash. I foresee some of the following consequences of an AI crash.
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