Is There an AI Bubble...and Will It Burst?

Andy Jordan is President of Roffensian Consulting S.A., a Roatan, Honduras-based management consulting firm with a comprehensive project management practice. Andy always appreciates feedback and discussion on the issues raised in his articles and can be reached at [email protected]. Andy's new book Risk Management for Project Driven Organizations is now available.

  Artificial Intelligence  

Considering how new artificial intelligence is—at least in terms of the current reality of generative and (to some extent) agentic AI—it’s amazing to me how many people are ready to write it off.

Many mainstream media outlets have been suggesting recently that AI may be a bubble—something that explodes into mainstream attention, then bursts to disappear just as quickly. The suggestion is that a lot of money is being invested into things that will never come to fruition. Comparisons are being made with the dot.com bubble of 20-odd years ago.

I understand why these warnings are being made. A lot of organizations are investing a lot of money in technologies that still have unclear paths to value. Valuations of AI firms are starting to reach eye-watering levels that ignore traditional valuation criteria. The same thing happened with the dot.com bubble—and when that bubble burst, there were a number of high-profile failures that saw the loss of many billions of dollars.

When you look at some of the organizations involved in AI, you certainly have to wonder whether they are ultimately headed for the same fate. But here’s the thing: Many of you have forgotten about the dot.com bubble, or wouldn’t be aware of it because it happened when you were too young. And if you don’t know about it, you’re likely surprised to hear that…

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