I think the fad will die down a bit, when companies figure out that AI will be more likely than humans to make very expensive mistakes that the company has to compensate, and saying it was the AI is not a valid cop out.
I foresee companies will go bankrupt on that account.
It doesn’t help to save $100k on cutting away an employee, if the AI causes damages for 10 or 100 times that amount.
When the bubble bursts, whoever is left standing is going to have to jack prices through the roof to put so much as a dent in their outlay. Their outlay so far. Can’t see many companies hanging in there at that point.
Not if the IP is purchased by another company leaving the original saddled with the debt, or spun off so the parent company can rebuy it thusly, or the government bails them out, or buys it to be the State AI too, or a bunch of other scenarios in this dark new world ahead.
I put my money on AI act here in Europe and the willingness of local authorities to make a few examples.
That would help bringing some accountability here and there and stir a bit the pot.
Eventually, as AI commodities, it will be less in the light. That will also help.
OpenAI is pets.com. It has fairly crappy models in a very strong competition for models. The only difference with pets.com is that US government is behind it to make Skynet for Israel’s control. Datacenters are meant to develop Skynet. The only pretense of economic strength in US is datacenter economy, and Skynet for Israel is absolute mission for US government.
Despite no possible business economics for datacenter model, the sheer will behind Skynet for Israel ensures that there is no imminent bubble pop. Perplexity and Coreweave may get sacrificed though.
Still GPUs and specialized AI GPUs are here to stay, even if sales forecasts can be too high. Open weight models are awesome. Smaller models can be trained after quantization to domain specialization, with hardware for small enough models accessible to individuals and businesses. The fatal flaw of using datacenter providers is that their purpose is to provide Skynet for Israel, and steal any information that might help in the process, and then terminate/genocide anyone who would stand in their way.
Agreed, but I do think that some jobs are just going to be gone.
For example, low level CS agents. I worked for a company that replaced that first line of CS defense with a bot, and the end-of-call customer satisfaction scores went up.
I can think of a few other things in my company that had a similar outcome. If the role is gone, and the customers and employees are being served even better than when they had that support role, that role ain’t coming back.
I’m pretty sure that even consumer services is an area where I saw a computer made an expensive mistake, promising the customer something very expensive, and a court decided the company had to honor the agreement the AI made. But I can’t find the story, because I’m flooded with product placement articles about how wonderful AI is at saving cost in CS.
But yes CS is absolutely an area where AI is massively pushed.
No it was a single case of reparation for damages of some sort. Where the company wouldn’t honor the deal, but lost the case in court.
But thanks for finding a concrete example of how AI makes stupid mistakes, this Airline case looks like the bot suffered from the infamous hallucinations they are prone to.
And it’s absolutely disgusting that the airline won’t honor it, and instead make all sorts of claims about how when and where the complaint needs to be filed.
Very good example of the principle of what I meant, although it’s only a few hundred dollars.
Oh 100%. The question will be are there more opportunities that come from it. Here’s my guess: if you can’t produce something interesting you will be fighting for scraps. Even that might not be good enough.
I think the fad will die down a bit, when companies figure out that AI will be more likely than humans to make very expensive mistakes that the company has to compensate, and saying it was the AI is not a valid cop out.
I foresee companies will go bankrupt on that account.
It doesn’t help to save $100k on cutting away an employee, if the AI causes damages for 10 or 100 times that amount.
When the bubble bursts, whoever is left standing is going to have to jack prices through the roof to put so much as a dent in their outlay. Their outlay so far. Can’t see many companies hanging in there at that point.
Not if the IP is purchased by another company leaving the original saddled with the debt, or spun off so the parent company can rebuy it thusly, or the government bails them out, or buys it to be the State AI too, or a bunch of other scenarios in this dark new world ahead.
That’s my favorite part. All the stolen IP.
I put my money on AI act here in Europe and the willingness of local authorities to make a few examples. That would help bringing some accountability here and there and stir a bit the pot. Eventually, as AI commodities, it will be less in the light. That will also help.
Good podcast about this bubble bursting : https://craphound.com/news/2025/10/06/the-real-economic-ai-apocalypse-is-nigh/
OpenAI is pets.com. It has fairly crappy models in a very strong competition for models. The only difference with pets.com is that US government is behind it to make Skynet for Israel’s control. Datacenters are meant to develop Skynet. The only pretense of economic strength in US is datacenter economy, and Skynet for Israel is absolute mission for US government.
Despite no possible business economics for datacenter model, the sheer will behind Skynet for Israel ensures that there is no imminent bubble pop. Perplexity and Coreweave may get sacrificed though.
Still GPUs and specialized AI GPUs are here to stay, even if sales forecasts can be too high. Open weight models are awesome. Smaller models can be trained after quantization to domain specialization, with hardware for small enough models accessible to individuals and businesses. The fatal flaw of using datacenter providers is that their purpose is to provide Skynet for Israel, and steal any information that might help in the process, and then terminate/genocide anyone who would stand in their way.
Agreed, but I do think that some jobs are just going to be gone.
For example, low level CS agents. I worked for a company that replaced that first line of CS defense with a bot, and the end-of-call customer satisfaction scores went up.
I can think of a few other things in my company that had a similar outcome. If the role is gone, and the customers and employees are being served even better than when they had that support role, that role ain’t coming back.
I’m pretty sure that even consumer services is an area where I saw a computer made an expensive mistake, promising the customer something very expensive, and a court decided the company had to honor the agreement the AI made. But I can’t find the story, because I’m flooded with product placement articles about how wonderful AI is at saving cost in CS.
But yes CS is absolutely an area where AI is massively pushed.
Not sure if it’s the one you are referring to, but AI gave discounts on flights.
No it was a single case of reparation for damages of some sort. Where the company wouldn’t honor the deal, but lost the case in court.
But thanks for finding a concrete example of how AI makes stupid mistakes, this Airline case looks like the bot suffered from the infamous hallucinations they are prone to.
And it’s absolutely disgusting that the airline won’t honor it, and instead make all sorts of claims about how when and where the complaint needs to be filed.
Very good example of the principle of what I meant, although it’s only a few hundred dollars.
The court honored it for now. I expect the future it will be your problem.
Oh but the EU?
Once they are done with North America the EU will be a non issue for them.
Oh 100%. The question will be are there more opportunities that come from it. Here’s my guess: if you can’t produce something interesting you will be fighting for scraps. Even that might not be good enough.