Is AI Truly Worth the Hype, or Are We Heading Into Another Tech Bubble?
A Brief Look at Past Tech Hype Cycles (Dotcom, Crypto, Metaverse)
Before diving into today’s AI hype, it’s important to understand how hype cycles have played out in the past. In the late 1990s, the internet was booming, everyone believed that “.com” businesses were the future, and money flooded into startups with barely any working product, but when these companies couldn’t deliver, the dotcom bubble burst around the year 2000, wiping out billions of dollars. There now exists a different type of bubble, one that seems to ‘power’ everything, the AI bubble.
A graph of the Gartner Hype Cycle. Source: pcdn
Bitcoin and Ethereum introduced a new kind of money and technology based on decentralization . While the technology had promise, the hype led to scams, failed projects, and price crashes in 2018 and again in 2022. More recently, the metaverse made headlines when companies like Meta (formerly Facebook) promised a virtual future. However, slow adoption and unclear value watered down the excitement.
Each cycle started with big ideas and real innovation but was followed by a wave of overhype, disappointment, and correction. The pattern? Great tech, too much excitement, and not enough delivery.
The Current AI Boom: Key Players, Breakthroughs, and Expectations
Today, AI feels like the next big thing, and big companies and startups alike are racing to build more intelligent machines. OpenAI’s ChatGPT can write stories, answer questions, and even help with coding. Google’s DeepMind beat human champions in games like Go, while Microsoft is baking AI into everyday tools like Word and Excel.
AI investment trends see this technology gaining momentum, with stock prices at record highs. The key players include OpenAI, Google, Microsoft, Meta, Amazon, and chipmaker NVIDIA. Their breakthroughs in generative AI (tools that can create text, images, or music) have amazed the public. These systems learn from vast amounts of data and produce results that feel almost magical.
People expect AI to change how we work, learn, shop, and even get healthcare. Some believe it will boost productivity like never before. Others fear it may replace jobs or become too powerful.
Areas Where AI Is Already Delivering Tangible Value

Despite all the buzz, AI is already making a big impact in the real world. In healthcare, it helps doctors detect diseases like cancer earlier by scanning thousands of medical images faster and more accurately than humans can, which means patients can get treated sooner, which can save lives. In customer service, you’ve probably chatted with an AI bot when asking about a delivery or checking a refund. These bots answer basic questions day and night, saving companies time and money while giving customers quicker responses.
In education, AI tools can understand how each student learns best, they can adjust quizzes, recommend lessons, and help students learn at their own speed. This is especially helpful for students who need extra support or learn in different ways. We also have agriculture, where smart machines powered by AI can track weather, monitor soil, and check the health of crops. Farmers use this information to grow more food while using fewer resources like water or chemicals.

In finance, AI helps banks spot unusual transactions that might be fraud, like someone trying to use a stolen credit card. It also helps investors study huge amounts of market data and make better decisions. AI is also showing up in everyday tools. If you use a phone to unlock your face, that’s AI at work. If you’ve seen recommendations on Netflix or YouTube, that’s also AI learning what you like. Even in environmental protection, AI helps track wildlife, measure deforestation, and predict natural disasters like floods or wildfires, which helps save both nature and lives.
These examples show that AI isn’t just a flashy toy or a cool science project. It’s becoming a tool we use to solve real-world problems and improve everyday life in practical, powerful ways.
Overpromises, Misconceptions, and Commercial Exaggerations
Still, there’s a risk of getting carried away. Some companies claim their AI can do more than it really can. It’s common to see products labelled “AI-powered” that are just basic automation, and these types of reports fuel the idea that AI is overrated.
There’s also a belief in artificial intelligence risks like AI being able to think for itself and the dangers it might pose to humanity in the future. AI cannot think for itself. These systems don’t have understanding or emotions, and they just make predictions based on patterns in data.
Overhyping AI can lead to public mistrust. When tools don’t meet expectations, users become disappointed, and confidence drops. It also opens the door for harmful decisions, like using flawed AI in hiring or policing.
Investment Trends and Signs of a Bubble Forming
Right now, investors are pouring huge amounts of money into AI, and venture capital firms are eagerly backing startups that promise to revolutionize everything from healthcare to education to transportation. This flood of excitement has pushed up the value of many AI-related companies and stocks in major AI players, especially chipmakers like NVIDIA, which have reached record highs. NVIDIA briefly became the world’s second most valuable company in 2024 due to AI demand
Some new AI startups are being valued at billions of dollars even before they’ve launched a working product. That’s raising eyebrows, and it reminds a lot of people of the dotcom bubble in the early 2000s, a time when internet companies exploded in popularity and value. Still, many collapsed because they didn’t actually deliver valuable products. Everyone wanted a piece of the internet back then, just like everyone wants in AI now.
When money moves faster than results, it creates a dangerous imbalance. Some AI startups may be overpromising what their technology can really do, using buzzwords to attract attention and funding. That kind of hype builds expectations that may not be realistic. If enough weak projects get funded and fail, investor confidence could drop, and a lot of money could be lost quickly, just like what happened with the crypto winter after the 2021 boom or the metaverse hype that cooled off in 2023.
History warns us: when speculation, the hope of future profits grows faster than actual progress or real-world value, a bubble forms and bubbles eventually pop. In fact, some economists are already calling the current AI craze a “mini bubble,” suggesting that while some companies will thrive and change the world, others might crash and burn, especially those built more on hype than substance.
It’s important to remember that not every AI company will succeed, and not every AI product will change the world. Just like in past tech booms, some will reshape industries while others fade away. The challenge now is figuring out which AI projects are building solid foundations and which are just chasing the spotlight.
What a Sustainable AI Trajectory Could Realistically Look Like
AI doesn’t have to crash like past tech hypes, and a realistic future for AI is one that focuses on steady progress, ethics, and solving real problems. Governments and tech leaders need to set rules so AI is used responsibly. We also need more transparency: companies should explain what their AI can and can’t do. Education is key, too, as more people understand how AI works, they can use it wisely.
Instead of aiming for science fiction, we should look at where AI can genuinely help. That means safer roads with self-driving cars, better learning in classrooms, faster medical diagnoses, and more efficient businesses. If we move forward with care and honesty, AI can be a powerful tool for good and not just another bubble waiting to burst.
What a Smart Future for AI Might Look Like
For AI to last and really help people, we need to focus on what it can actually do right now. That means using it in smart ways; in schools, hospitals, science, and more, without pretending it’s magic. We also need to make sure people learn how to use AI responsibly. Rules and laws can help make sure it’s used fairly and doesn’t hurt people.
Working together with governments, businesses, teachers, and developers, we can build a future where AI helps us, not replaces us. AI is exciting, powerful, and full of potential, but it’s not perfect, and it’s not something that should be blindly trusted just because it’s new. If we’ve learned anything from past tech booms, it’s that real value takes time. The best way to make sure AI is worth the hype is to stay realistic, keep learning, and focus on how it can help solve real problems.
So, is AI the next big thing or just another tech bubble? The answer depends on how we use it. And that’s something we all have a role in shaping.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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