(MENAFN) Artificial intelligence (AI) tools, including ChatGPT and Google Gemini, are increasingly integral to both government and market operations worldwide, as countries and major tech firms invest heavily in the technology. This surge in funding, particularly for data centers, alongside soaring market valuations of AI companies, has sparked concerns about a potential AI bubble.

Gloria Shkurti Ozdemir, an AI researcher at Azerbaijan’s Hazar University, noted that AI R&D has shifted from being led by governments and academia to being driven primarily by the private sector. She highlighted the military and geopolitical significance of AI, explaining that it creates a self-reinforcing cycle: companies compete for commercial and technological dominance, while governments fund and adopt AI to maintain competitive and security advantages, spurring further R&D.

“Previous tech projects where expectations exceeded reality, like the metaverse, showed that bubbles can form and fade,” Ozdemir said. She stressed that even if an AI bubble bursts, it is unlikely to trigger a systemic collapse, as economic competition, geopolitical imperatives, and AI’s foundational role will sustain its development and funding.

Agah Tugrul Korucu, an AI expert and associate professor of IT, emphasized that concerns fueling the AI bubble debate include data quality, cost-benefit ratios, hallucinations, reliability issues, and immature engineering support. “Scattered or inconsistent data can lead AI systems to produce inaccurate results with definitive language, which is critical in sectors like healthcare, finance, and law,” he said. However, he stressed that these challenges do not negate AI’s long-term importance.

Korucu also highlighted AI’s contributions to productivity and safety. Industrial analysis that might take experts eight hours can now be completed in minutes, allowing human workers to focus on strategic or creative tasks. AI-powered robotic production lines can detect micron-level errors, improving quality while reducing costs. Repetitive, hazardous, or precise tasks can be automated safely, and data-driven decision-making enhances managerial efficiency.

Looking forward, experts agree that AI will become as essential to daily life as electricity, with continued innovation shaping both public and private sectors globally.

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