There’s a lot of talk about whether the current rise in AI companies and investments is just a bubble or the start of something truly revolutionary. Some experts believe it’s both. They see signs of hype and overinvestment, but also recognize AI’s potential to change how we live and work. One prominent voice in this debate is Peter Fedočko, CTO of GoodData.ai, who offers a nuanced view on the topic.

The Bubble or the Foundation for the Future?

Fedočko points out that the AI industry shows clear signs of a bubble. Valuations of early-stage startups are soaring, and a few big companies dominate the narrative around AI’s benefits. Many organizations rushed to adopt AI, investing heavily over the past couple of years, and now they’re questioning whether those investments will pay off. It’s a familiar pattern seen in previous tech booms, where hype outpaces actual product viability.

However, Fedočko emphasizes that this doesn’t mean AI isn’t valuable. He draws parallels with the dot-com crash of the early 2000s. After that crash, the internet didn’t disappear; it became an essential part of infrastructure. Similarly, he believes AI will survive its current hype cycle and become a core part of how businesses and society operate. Once the dust settles, the real builders will focus on creating useful, lasting technology.

Analogies with the Internet and the Economy

Fedočko compares AI to the internet’s rise, noting that the internet initially faced skepticism and overinvestment. But over time, it laid the groundwork for a new knowledge economy. Search engines, online communication, and digital commerce transformed society. He sees AI following a similar path—initial hype, followed by steady development and integration into daily life.

He explains that AI is not about replacing all human work but automating repetitive, low-value tasks. This frees people to focus on more complex, creative, or strategic parts of their jobs. Historically, major technological shifts like the Industrial Revolution changed the types of jobs available, not just the number of jobs. Fedočko believes AI will enable a similar shift, helping people move up the value chain instead of losing their roles.

As for where we are in this cycle, Fedočko suggests we’re between the peak of inflated expectations and the dip of disillusionment. Infrastructure like data centers and AI models are being built now, even if the public perception is negative. He compares it to the laying of fiber-optic cables in the early 2000s, which was happening while many saw the tech bubble burst. The core work continued, and the infrastructure eventually powered the internet’s boom.

In summary, Fedočko sees both hype and hope in AI. While acknowledging the current overvaluation and market corrections, he believes the technology’s utility and transformative potential remain intact. Like the internet before it, AI is likely to become a foundational part of the future economy—once the hype subsides and real progress takes center stage.

Inspired by

• https://www.techmonitor.ai/movers-and-shakers/gooddata-ai-cto-says-the-enterprise-ai-bubble-is-real-but-so-is-ais-transformational-power