AI bubble warning from respected investment expert

[Hanno Labuschagne]

AI bubble warning from respected investment expert

E-Squared Investments manager Thato Ntseare has called for governance guardrails for investments into artificial intelligence (AI) in South Africa to limit the impact of a potential "bubble" bursting in the market.

In an interview with Business Times, Ntseare said that there has been "big talk" that investment in AI solutions was mimicking a "bit of a bubble."

 

[Neuk_]

It's a no from me, you want to take the risk, you take the risk.

 

[Swa]

It remains a bubble regardless. The suppliers are also the investors paying for it.

 

[Fulcrum29]

"Guardrails" would only serve to limit retail investor's access to the markets.

Also...

“There is a lot of hype around these businesses, and as long as a business says ‘we use AI’ in its pitch, then it immediately attracts billions of dollars in valuations,” Ntseare said.

This happens all the time. I am quite sure that E-Squared Investments has also done it to pitch to a customer. It is not that "we use AI", but that products (and services) are dressed up to look more attractive. Snake Oil, selling water to eskimos, etc. There is always a marketing meta or so to speak.

Just to add, there is pro-active persona management at work. Companies create an ideal customer, at which their strategies are targeted. Then they go on a campaign, using tactics, to change their target markets perception that they are that ideal customer. Things like product leadership, though leadership, etc, play big roles in this. Humans like to create. Not everything at its root is organic.

 

[Quicks]

We know it's a bubble... Just waiting for the POP!

 

[FiestaST]

Had a productive weekend making & showcasing projects for my LinkedIn profile. Hit freaking limits on 2 of my 3 main AI bots.

So yeah it's a "yes" from me.