INDUSTRY INSIGHT
Bubble trouble – AI that meets expectations amid all the hype and scepticism
With increased coverage and usage of AI tools, questions have been raised about whether the AI bubble may burst. Ben Gilbert, VP at 15gifts, explores where the warnings come from and what the future holds for AI in the business world.
Warnings from the Bank of England about the‘ AI bubble’ bursting have concentrated minds on where the technology is delivering value in the real world.
The bank’ s finance policy committee warned that‘ the risk of a sharp correction has increased’ following the soaring valuations of AI companies. The fear is of a repeat of the dot-com bubble of the late 1990s when valuations collapsed as investors feared many companies might never deliver on their digital technology promises.
The current apprehensions about AI have been triggered in part by reports from authoritative bodies such as MIT and Gartner. MIT believes 95 % of organisations receive no ROI from investments in Generative AI, while Gartner has predicted that more than 40 % of Agentic AI projects will fail by 2027 due to rising costs, governance challenges and lack of clear ROI. www. intelligentcxo. com
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