AI is effectively ‘useless’ – and it's created a ‘fake it till you make it’ bubble that could end in disaster, veteran market watcher warns


A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on June 28, 2024. Ferguson fears investors’ AI exuberance has created a concentrated market bubble that’s reminiscent of the dot-com era. — Bloomberg via Getty Images/NYT

There’s no avoiding the hype surrounding AI these days. Promises of new developments like personal robot assistants and miracle cancer cures are ubiquitous as executives take every opportunity to emphasise their AI chops to enthusiastic investors – and slightly less enthusiastic consumers.

Not everyone has been blown away by the AI fanfare, however. James Ferguson, founding partner of the UK-based macroeconomic research firm MacroStrategy Partnership, fears investors’ AI exuberance has created a concentrated market bubble that’s reminiscent of the dot-com era.

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