The AI bubble: valuation vs. potential

From an equity valuation standpoint, yes I think we are probably in an AI bubble. But if and when it bursts, I think it will be more of a reflection on aggressive business valuation assumptions than the technology’s actual transformative potential.

In other words, as we often hear with emerging tech., we tend to overestimate the impact in the short-term, and underestimate the long-term impact.

So don’t let any change in the valuations of certain companies change your mind on the importance of learning how AI actually works, and how to use it effectively, one day at a time.