As a lowly retail investor, I'm only investing in AI because everyone else is investing in AI. I hope for a greater fool to dump my AI stocks on before the music stops. I am sure plenty of Wall Street sees it the same way.
We're certainly seeing short term value at companies who grew profits by replacing workers with cheap AI tools. But the true cost of those AI tools is still being paid by investors, not customers. (Not to mention the indirect costs being paid by society, from the rising cost of RAM & electricity to global warming.)
In the long term these AI companies will need to raise their prices substantially if they're to break even. Will the value still be there for their customers when its no longer cheap?
And if AI puts enough people permanently out of work, the GDP will drop, leading to demand for any product made with AI dropping too. It is an industry that could eventually eat itself.
