The AI revolution has sent tech company share prices soaring, but how much of this is hype, rather than reality, and when will the bubble burst? Brian Hall sets out to educate readers with Busting the AI Bubble. He explains that AI is a computer-based technology that can carry out routine tasks normally undertaken by humans. It can thus augment or replace human activities more efficiently by accessing vast datasets via the internet. It can also identify patterns and trends and perform predefined functions. The longer-term economic and social impact of AI will be enormous, and many companies have already adopted AI on a large scale to increase efficiency and profits. As a consequence, the companies that develop AI technology now dominate the US stock exchange in terms of market capitalisation. Investors have chased up the AI share prices beyond their true value in the expectation of high future profits, thereby creating a bubble. This phenomenon occurs regularly as investors overestimate the potential of any new technology. When common sense prevails, the market adjusts, and investors lose money, often triggering a wider collapse.

Busting the AI Bubble provides a solid conceptual background to AI and its capabilities. It should not be seen as a solution for all of mankind’s problems, as some would have us believe. While it has made a positive impact in many areas, in the longer term, jobs will be under threat. A further concern is whether AI could ultimately compete with the human race. Brian Hall sketches various scenarios, but concentrates on an impending stock market correction, backed by rigorous research that draws on the lessons of the past to present compelling support for his views. Previous stock market bubbles serve as warnings, such as the 1929 market crash and the Dot-com bubble of 2000. The pattern is familiar. This time around, the stock markets have chased tech company stocks to unprecedented heights. The question is when it will crash. The long-term potential of AI is difficult to quantify. The book asks key questions regarding how long it would take to recoup the premium paid for a particular share. The writing is concise, and the information is presented in a logical and relatable manner. A bibliography, glossary, and data tables round off a thought-provoking book, which may yet be a timely warning to investors.

In Busting The AI Bubble, Brian Hall provides a deep history of economic systems and materialism, taking the reader back as far as the 1950s. He draws comparisons to early economic bubbles as the foreground to assess the potential of an AI bubble, leveraging pertinent questions for closer analysis. His graphic material adds further illustrative value to his argument. While reading, I was reminded of the 2015 movie The Big Short, exposing the 2008 subprime scenario that threatened market stability. The author’s examples demonstrate a keen knack for storytelling, making the business concepts that much more palatable and accessible to a wider audience. The author suggests that the current enthusiasm for AI can be justified by its many and varied applications, especially as an aid to productivity that cuts across sector diversity.

Brian Hall is careful to address the ethical considerations that need to accompany AI’s galloping pace of development, urging readers to think critically about the implications of autonomous systems on privacy, employment, and decision-making. His insights could not be more relevant at a time when the urgent need for responsible innovation is demanded in an era of unprecedented technological change. Overall, Busting the AI Bubble is an essential read for anyone interested in the future of technology and its impact on society. All tenets of Busting the AI Bubble are best summarized in the conclusion to chapter 2: “… people are seldom fooled by the same thing twice. However, the same fundamental phenomenon seems to wear many guises.”