BURST YOUR BUBBLE: Fears mount as tech stocks tumble following warning about AI investments

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FROM DAILY MAIL: There are fears that the AI bubble is set to dramatically burst as tech stocks plummet following a study that warned most artificial intelligence investments are yielding ‘zero returns’.

It comes after the U.S. stock market exchange lost $1trillion in just four days as a tech stock sell-off escalated on Wednesday.

The drop-off came amid alarm generated by a report by Massachusetts Institute of Technology (MIT) researchers that announced most AI investments give ‘zero return’ for businesses.

When ChatGPT was launched in 2022, AI chatbots were thought to be the way forward, with the promise of saving executives millions. MIT’s researchers, however, surveyed 150 business leaders and 350 employees and found, “Just 5 percent of integrated AI pilots are extracting millions in value, while the vast majority remain stuck with no measurable P&L [profit and loss] impact.”

MIT’s recent findings on AI investments pose a significant threat to the tech stock bubble, which has contributed trillions of dollars to the value of US stocks.

There are concerns that the current situation may mirror a pivotal moment in financial history, reminiscent of the ‘internet bubble’ that burst in March 2000.

During that period, stocks reached their peak, but one of the most prominent tech companies experienced a staggering 60% drop in its share price. This triggered a cascading effect, leading to the wiping out of trillions of dollars from the market and subsequent collapses of numerous other companies..

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