Investors who piled into a handful of big tech names on hopes for an AI-driven windfall are confronting warnings that the frenzy may be overextended. Veteran investor Jeremy Grantham likens today’s enthusiasm to past manias in railways and the internet, arguing that core AI will prove more utility-like, with profits accruing mainly to service layers rather than the base technology. On the ground, the promise of sweeping automation is colliding with factory realities—unpredictable supply chains, equipment failures and regulatory constraints—where current AI struggles beyond stable, repeatable tasks. The result: rising doubts about near-term returns, even as companies race to deploy AI and consumers test its limits.
Related articles:
— NIST AI Risk Management Framework: Guidance for Trustworthy AI
— OECD AI Principles: Policy Guidance
