With all these major capital investments in AI infrastructure, we're clearly living through an AI boom. However, this bubble isn't quite as big as you may think.
To know why, look at some of the recent claims about AI. In 2024, Elon Musk claimed we'd reach AGI by the end of 2025. This time last year, the Anthropic CEO claimed 90% of coding would be automated within 3-6 months (BusinessInsider.com).
This isn't the future we're living in, but we may not be far off either.
What Caused the Sudden AI Boom?
The current AI boom is the result of unprecedented data availability and massive computing power. With Nvidia revenue on the rise, it's easy to see that the demand for AI infrastructure is increasing at a historic pace.
Other AI industry trends paint much of the same picture. These include:
- Increased popularity of AI agents
- More companies are building internal AI factories
- The rise of multimodal and specialized AI models
Is the AI Bubble Going to Burst?
The future of AI becomes easier to predict if you look at history. In the late 1990s, the Internet established itself as the next big thing. Much like now with AI, CEOs were making huge promises, and valuations were skyrocketing.
In 2000, the dotcom bubble burst. Most of the promises went unfulfilled, and many companies went bankrupt. And yet, the Internet itself survived.
The AI bubble seems to be following the same pattern. Right now, there are a lot of unrealistic expectations flying around. Once (not if) this bubble bursts, however, AI will stick around and continue to provide value to our lives.
What Would Happen if the AI Bubble Bursts?
If we look at the dotcom example, here's what will happen at some point:
- The AI hype will reach its natural peak
- Investors will lose their patience
- The stock prices will crash
- Weaker companies will go bankrupt
- The few strongest companies will dominate the market
Following this outcome, the AI technology will stabilize. Some AI advancements in 2026 already give us a good idea of what the mature industry will look like.
What Jobs Will Be Eliminated by AI?
The AI technology impact will have a major effect on the job market. Even now, many people believe that getting into programming is pointless. Here's the thing, though: if AI can learn coding, it can learn almost anything.
So, what's the solution? Sitting around and doing nothing won't help. Instead, you should stop thinking of AI as a threat and see it as a career accelerator.
Since AI will be part of our lives, you should get in on the ground floor. More and more people will use it to boost their productivity and learn new skills. The real extensive changes will take place over decades, not years.
Learn More About the AI Revolution!
The bottom line: the AI boom is real, but unsustainable. Most of the media narratives in the news right now are either exaggerated or simply false. At the same time, there's no denying that AI will alter the way we work.
Want to learn more about the future of AI? Check out our AI predictions for 2026!
This article was prepared by an independent contributor and helps us continue to deliver quality news and information.
