Every few decades, a new technology comes along that changes everything: electricity, the internet, smartphones. Now we’re in the midst of AI’s meteoric rise and global takeover. That was once a controversial take but not anymore. Artificial intelligence is already transforming the way we work, create, and communicate. But what most people don’t realize is that what we’re seeing now is just the beginning. In fact, the AI Revolution we’ve all been watching unfold through ChatGPT, Nvidia’s chip development, and the construction of massive cloud compute centers – is already becoming old news………Continue reading…
By: Luke Lango
Source: InvestorPlace
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Critics:
Some economists have been optimistic about the potential of the current wave of AI to boost productivity and economic growth. Notably, Stanford University economist Erik Brynjolfsson, in a series of articles has argued for an “AI-powered Productivity Boom” and a “Coming Productivity Boom”. At the same time, others like Northwestern University economist Robert Gordon remain more pessimistic.
Brynjolfsson and Gordon have made a formal bet, registered at long bets, about the rate of productivity growth in the 2020s, to be resolved at the end of the decade.Big Tech companies view the AI boom as both opportunity and threat; Alphabet’s Google, for example, realized that ChatGPT could be an innovator’s dilemma-like replacement for Google Search. The company merged DeepMind and Google Brain, a rival internal unit, to accelerate its AI research.
The market capitalization of Nvidia, whose GPUs are in high demand to train and use generative AI models, rose to over US$3.3 trillion, making it the world’s largest company by market capitalization as of 19 June 2024 and became the first company to reach US$4 trillion on 9 July 2025 and subsequently US$5 trillion on 29 October later that same year. In 2023, San Francisco’s population increased for the first time in years, with the boom cited as a contributing factor.
Machine learning resources, hardware or software can be bought and licensed off-the-shelf or as cloud platform services. This enables wide and publicly available uses, spreading AI skills. Over half of businesses consider AI to be a top organizational priority and to be the most crucial technological advancement in many decades. Across industries, generative AI tools are becoming widely available through the AI boom and are increasingly used in businesses across regions.
A main area of use is data analytics. Seen as an incremental change, machine learning improves industry performance. Businesses report AI to be most useful in increased process efficiency, improved decision-making and strengthening of existing services and products. Through adoption, AI has already positively influenced revenue generation in multiple business functions. Businesses have experienced revenue increases of up to 16%, mainly in manufacturing, risk management and research and development.
AI and generative AI investments have been increasing with the boom, increasing from $18 billion in 2014 to $119 billion in 2021. Most notably, the share of generative AI investments was around 30% in 2023. Further, generative AI businesses have seen considerable venture capital investments even though regulatory and economic outlooks remain in question. Tech giants capture the bulk of the monetary gains from AI and act as major suppliers to or customers of private users and other businesses.
With the introduction of AI, there has been an exponential rise in production for businesses. It’s expected that workers could use resources provided by artificial intelligence to boost their productivity. As many small businesses don’t use AI, it’s believed that if it’s adopted by more businesses, the whole work structure could be changed, as many tasks will be automated by AI.
The U.S. Census Bureau’s Business Trends and Outlook Survey measured AI use at 3–9% of businesses in March 2025, using language that asked whether firms used AI “to produce goods and services.” After revising the question to cover “any business function,” the Bureau’s measured adoption rate increased to 18% in March 2026. According to Bell & Korinek (2023), economic effect of AI could worsen economic inequality, which could potentially threaten democracy in ways which are separate from threats caused by AI’s use in misinformation and propaganda.
Tech companies such as Meta, OpenAI and Nvidia have been sued by artists, writers, journalists, and software developers for using their work to train AI models. Early generative AI chatbots, such as the GPT-1, used the BookCorpus, and books are still the best source of training data for producing high-quality language models.
ChatGPT aroused suspicion that its sources included libraries of pirated content after the chatbot produced detailed summaries of every part of Sarah Silverman’s The Bedwetter and verbatim excerpts of paywalled content from The New York Times. In protest of the UK government holding consultations on how copyrighted music can legally be used to train AI models, more than a thousand British musicians released an album with no sounds, entitled Is This What We Want?
Much of the AI boom has been funded by loans and venture capital, but many commercial AI services remain of questionable practical utility or quality for business. Despite more than $60 billion in corporate investment in AI in 2025, 95% of business AI projects are unprofitable, according to research from MIT. Producers of generative AI, such as OpenAI, also themselves currently have costs greatly exceeding their revenue.
As other major tech companies such as Nvidia are both heavily invested into AI and dependent on the AI ecosystem and its hardware demands for their own ongoing growth, this has raised speculation of a wider economic bubble in the tech industry, particularly if future demand falls short of the current levels of AI investment.
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