(MENAFN) Artificial intelligence tools, including ChatGPT and Google Gemini, are becoming essential in both government operations and market activities worldwide, as nations and major technology companies continue to make substantial investments in the field.

The influx of billions of dollars into AI-focused data centers, along with soaring market valuations for AI firms, has sparked concerns about the potential formation of an AI-driven financial bubble.

Gloria Shkurti Ozdemir, an AI researcher and faculty member at Azerbaijan's Hazar University, explained that while governments and academic institutions previously led AI research and development efforts, the private sector now dominates the landscape.

She added that the increasing military and geopolitical significance of AI has created a self-reinforcing cycle involving both governments and 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.

Ozdemir also pointed to past technology initiatives where hype exceeded reality, showing how speculative bubbles can collapse. She noted, for instance, that the metaverse was developed on a platform that was not yet fully mature. "Interest quickly faded, but the concepts and goals did not disappear entirely; they were only postponed," she added.

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