The AI bubble isn't like the internet bubble
pluralistic.net
May 26, 2026
14 min read
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47/100
Summary
The AI bubble differs from the internet bubble as it does not require forced adoption among workers. Upcoming appearances include cities such as London, Kansas City, and Toronto.
Key Takeaways
- The AI bubble differs from the internet bubble because employees are not forced to adopt AI tools in the same way they were with early web technologies.
- IT departments face a fundamental conflict between enabling worker productivity and enforcing compliance, which can hinder business goals.
- Workers often circumvent IT policies to accomplish their tasks, highlighting the need for flexibility and agency in the workplace.
- "Process knowledge," the implicit understanding among workers, is crucial for navigating unforeseen situations that policies do not address.
Coverage & discussions
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Analysis ready
Community Sentiment
Positives
- The continuous improvement in AI processes and software indicates that while models may become outdated, the underlying technology will keep evolving, ensuring relevance.
- LLMs are proving to be transformative for developers, significantly enhancing productivity and reducing the burden of repetitive coding tasks.
- The profitability of AI models over their amortized time-frame suggests a sustainable economic model, despite the high upfront costs associated with training new models.
Concerns
- The rapid depreciation of hardware and models raises concerns about the long-term viability of investments in AI infrastructure, as profitability may diminish quickly.
- There is a growing sentiment that AI is being misused for trivial tasks, leading to a proliferation of low-quality outputs and unnecessary work.
- The reliance on venture capital for AI development indicates a precarious financial foundation, with skepticism about the actual profitability of AI ventures.
