(MENAFN) Artificial intelligence (AI) platforms such as ChatGPT and Google Gemini have rapidly become vital components of governmental operations and financial markets around the world, as nations and major technology companies intensify their spending on the field.

Massive financial commitments to data centers, paired with the swift escalation in the market worth of AI enterprises, have heightened worries that an AI-driven economic bubble may be forming.

Gloria Shkurti Ozdemir, an AI specialist and academic at Azerbaijan’s Hazar University, explained to Anadolu that although governments and universities previously steered AI research and development (R&D), the private sector has now assumed primary leadership.

Ozdemir remarked that AI’s expanding military and geopolitical significance has generated a reinforcing technological cycle that connects both public institutions and private corporations.

“Companies are competing for commercial and technological superiority, while countries are prompted to fund and adopt these technologies to keep up in competition and security, triggering new waves of R&D with public funding,” she said.

She added that earlier technological ventures, in which enthusiasm surpassed practical outcomes, illustrate how speculative bubbles may eventually burst—the metaverse, for instance, relied on technology that had not yet fully matured. "Interest quickly faded, but the concepts and goals did not disappear entirely; they were only postponed."

She underscored that the possibility of an AI bubble remains, yet any potential rupture would likely avoid widespread structural damage and instead lead to a brief deceleration rather than a full-scale breakdown.

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