(MENAFN- Mid-East Info) Artificial Intelligence is reshaping industries at a pace unmatched in recent history, fueling both optimism and skepticism across global markets. Amid headlines warning of an“AI bubble,” it is critical to separate speculation from substance. The reality is far more nuanced: behind the hype lies a transformative investment cycle-one that demands discipline, strategic clarity, and a long-term view.

please find a comment from Mike Capone, CEO of Qlik, on how to interpret the current environment:

“People keep asking whether AI is a bubble. I do not think that is the right single question. What I see globally is an investment cycle with pockets of speculation on top, not a pure rerun of 1999.

The facts matter here. The companies driving most of the spend today actually have earnings, cash flow, and customers asking for capacity. Central banks and market analysts point out that valuations are high, but they are still anchored in real profits and very real capital expenditure on data centers, networks and power. That looks more like an industrial build-out than a meme stock frenzy.

At the same time, whenever you combine high valuations, concentration in a small group of names, and some circular deals between chipmakers, cloud providers and model companies, you should expect corrections. The IMF and several central banks are right to warn that parts of this market can reprice sharply if earnings disappoint. That is healthy. Some projects will not clear the bar and that is exactly how cycles sort themselves out.

From my vantage point, the real dividing line is not 'AI or no AI.' It is discipline. If a board treats AI as a fashion spend, with no clear view of which work units change and how they will be measured, they are volunteering to be part of the froth. If they treat AI like any other serious capex decision, tied to unit economics, error rates and time to resolution in specific workflows, they are much more likely to create durable value and to survive any shake-out.

So I would put it this way: we are not living in an AI fairy tale, and we are not living in a doom story either. We are in a sorting phase. The technology is real, the productivity potential is significant, and there will be winners and losers. Whether you end up on the right side of that is less about the hype cycle and more about the discipline of how you invest.”

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