Tech firms face a bill likely to run into trillions of dollars on advanced microchips and data centers, or risk falling behind their competitors – but the risk of getting caught in a bubble is growing.
Hundreds of millions of dollars are being invested in advanced microchips and data centers. Still, a study carried out by MIT suggests the majority of firms have seen no return on their AI investments. Researchers at Harvard and Stanford found evidence that employees are using AI to create “workslop” - AI-generated work content that masquerades as good workbut lacks the substance to meaningfully advance a given task, risking a productivity loss that could amount to millions for larger organizations.
While there are some warning signs of a bubble - the debt-fueled expansion, circular financing, over-valued stock prices, and high capital expenditure usually indicate lower future returns- there is evidence from many industries that AI will prove to be an essential tool for success in the future. Whether the companies investing in it now will be the ones to succeed remains to be seen.
