The air begins to leak out of the overinflated AI bubble

The term "AI bubble" refers to the idea that the excitement, investment, and hype surrounding artificial intelligence (AI) may be growing at an unsustainable rate, much like historical financial or technological bubbles (e.g., the dot-com bubble of the late 1990s). Here are some key aspects of this concept:

1. Overvaluation and Speculation: Investors and companies are pouring significant amounts of money into AI technologies, sometimes without fully understanding the technology or its realistic potential. This could lead to overvaluation of AI companies and startups.
2. Hype vs. Reality: There is often a mismatch between what people believe AI can achieve in the short term and what it is currently capable of. Some claims about AI may be exaggerated, leading to inflated expectations that cannot be met.
3. Risk of Market Crash: Like previous bubbles in history, if AI does not deliver on its overhyped promises, there could be a significant drop in AI investments, stock prices, and general interest. This could result in a burst of the "AI bubble," causing financial losses and slowing down real progress.
4. Comparison to Previous Bubbles: The "AI bubble" is compared to the dot-com bubble or the housing bubble, where early optimism led to massive growth and investment, followed by a sudden collapse when the reality didn't meet expectations.

Not everyone believes an AI bubble is forming, but the term is often used as a cautionary reference, urging people to balance enthusiasm with realistic expectations about the technology’s development and adoption.