Are we in an AI bubble?

In this episode of the Practical AI podcast, co-hosts Daniel Whitenack and Chris Benson delve into the question of whether the current AI landscape constitutes a bubble, drawing parallels and distinctions with the dot-com era. They analyze perspectives from figures like Federal Reserve Chair Jerome Powell, who notes that AI companies have real earnings, and discuss NVIDIA's soaring valuation. The conversation explores arguments for and against the existence of an AI bubble, considering factors such as speculative investing, business fundamentals, diversification of revenue streams, and the integration of AI into various industries. They also discuss the potential impact of AI-driven layoffs on the economy and the cognitive effects of over-reliance on AI. Ultimately, they conclude that while there may be smaller "bubbles" within the AI space, it doesn't fit the classic bubble analogy of the dot-com era due to its utility and pervasiveness.