The AI bubble might deflate faster than previous technology market ‘manias’, but the recovery will be even stronger once companies catch up with their massive infrastructure spending.
Using generative AI, GPT platforms – artistic impression. Image credit: Freepik, free license
Key takeaways:
- - The AI bubble will pop sooner than past tech cycles but rebound with greater force
- - Computing power supply chains are already committed for the next 2-3 years
- - AI-skilled workers now command 56% higher wages, more than doubling last year’s premium
Dubey stands firm on AI’s long-term trajectory despite supply chain worries. Speaking to Reuters Global Markets Forum, the CEO brushed aside near-term concerns.
“There is absolutely no doubt that in the medium- to long-term, AI is a massive secular trend,” he said.
“Over the next 12 months, I think we’re going to have a bit of a normalization … It’ll be a short-lived bubble, and (AI) will come out of it stronger.”
Demand for computing power still outstrips supply. “Supply chains are almost spoken for” over the next two to three years, Dubey noted. Chipmakers and hyperscalers now control pricing, which mirrors their bloated public market valuations.
AI has unleashed the biggest tech revolution since the internet emerged. Trillions of dollars have flooded into the sector, generating massive equity gains. But memory chip shortages persist, regulators ask tough questions, and worries mount about job security.
Dubey doubles as NTT DATA’s chief AI officer. He admits the company has begun revising recruitment approaches as AI transforms employment markets.
“There will clearly be an impact … Over a five- to 25-year horizon, there will likely be dislocation,” he said. The firm continues hiring globally despite these shifts.
AI Bubble to Pop Fast Then Rebound: NTT DATA CEO - Technology Org
NTT DATA boss says AI bubble will deflate quicker than past tech cycles but recover stronger as corporate adoption accelerates.