Is the AI bubble about to burst?

What to watch for as the markets wobble

- ALEX DRYDEN

THE GLOBAL investment frenzy around AI has seen companies valued at trillions of dollars and eye-watering projections of how it will boost economic productivity.

However, in recent weeks the mood has begun to shift.

Investors and chief executive officers are now openly questioning whether the enormous costs of building and running AI systems can really be justified by future revenues.

Google's CEO, Sundar Pichai, has spoken of “irrationality” in AI's growth, while others have said some projects are proving to be more complex and expensive than expected.

Meanwhile, global stock markets have declined, with tech shares taking a particular hit, and the value of cryptocurrencies has dipped as investors appear increasingly nervous.

So, how should we view the health of the AI sector?