The Rise of AI: Boom or Bubble ?
Artificial intelligence is no longer a distant promise—it’s shaping industries, driving record investments, and capturing the world’s imagination. From chatbots and self-driving cars to medical breakthroughs and creative tools, AI’s real-life application seems not just limitless but have also risen explosively over the years. But is this explosive rise the start of a lasting boom, or just another bubble waiting to burst? To understand this, we first need to grasp the concept of a bubble. What is the difference between a boom and a bubble? An economic bubble is similar to your soap bubble. When there is an increased inflow of capital into a market, it drives the price up and leads to speculative buying (buying in the hope that the price will keep rising, thus increasing gains). This speculative buying further boosts the price, causing explosive growth similar to a soap bubble, which continues to expand as more air is added. However, since this growth and price inc...