Artificial Intelligence Investment Is Inflated Beyond Business Reality
The UK has been told it stands on the edge of an artificial intelligence revolution. Big technology companies promise billions of pounds of investment, new jobs and world leadership in a field that is still more experiment than settled industry. Yet, across markets, warnings are being voiced that the foundations of this promise are brittle and may not hold. The language echoes the late 1990s, when the internet boom inflated values far beyond business reality and the dotcom crash tore those illusions apart. The Nasdaq rose fivefold in the space of years and lost a third in weeks. Analysts at Bank of America calculate that AI stocks have now risen nearly sixfold in five years. That rate of acceleration has not been matched by either productivity growth or profitability in the real economy.
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