Why is AI Today both a Bubble and a Treasure?

By Mohamed Moshrif, with help of LLMs in content formatting and editing.

Introduction

Artificial intelligence (AI) and Large Language Models (LLMs) have rapidly ascended to the peak of inflated expectations. The discourse surrounding AI is polarized, with fervent "bloomers" envisioning a utopian future powered by intelligent machines, while apprehensive "doomers" warn of an impending technological apocalypse.?

This stark contrast in perspectives underscores the critical need for a balanced, nuanced understanding of AI's potential and its challenges. The reality is that AI and machine learning (ML) have been subjects of research for decades. However, the recent surge in mainstream awareness has created a disconnect between the long-term vision of researchers pursuing Artificial General Intelligence (AGI) and the often-misguided expectations of businesses and investors seeking quick profits.?

This disconnect fuels the growing concern that AI is on the verge of becoming a bubble, a scenario with potentially devastating economic consequences.

In short, can AI achieve a future that looks like the image below? That's what we need to uncover in this article.

Roadblock towards AGI

The path to AGI, a form of AI with human-level cognitive abilities, is fraught with significant obstacles.?

While recent advancements have been impressive, replicating the computational power and efficiency of the human brain remains a formidable challenge.?

Consider the sheer energy disparity: current AI systems require between 200KW and 10MW to perform a single task that the human brain accomplishes using a mere 20W (an approximate calculation based on similar tasks).?

This power shortage is compounded by a global silicon shortage, further limiting the development and deployment of advanced AI systems. Although the recent publications from DeepSeek and similar companies showed that we can build systems using less resources, the fact remains that DeekSeek used research from other players that already cost billions and hundreds of thousands of advanced chips in order to build their systems, which makes the shortage still real for further advancements beyond what we already have today.

Furthermore, current computing paradigms are based on binary 0/1 logic. A true leap towards AGI may require venturing into the realm of quantum computing, a field still in its nascent stages.?

Finally, the quality of data used to train AI models is paramount. Biased or incomplete data can lead to flawed algorithms and perpetuate societal inequalities.

Why do we even need AI?

Despite these challenges, the potential benefits of AI are undeniable.?

Throughout history, human ingenuity has driven remarkable innovation. However, the human mind has a fundamental limitation: scalability.?

While we excel at processing complex and unstructured information, our capacity is finite. AI offers a powerful solution to this scalability problem.?

Rather than replacing human intelligence, AI should be viewed as a complementary force, augmenting our abilities and enabling us to tackle problems of unprecedented scale and complexity.?

AI can sift through massive datasets, identify patterns, and generate insights that would be impossible for humans to achieve alone.

Deep Dive into Industry Applications

Now, let's explore the transformative potential of AI across diverse industries and how AI can really reshape them.

Perfumery & Beauty: From One-Size-Fits-All to Bespoke Scents

The $648 billion (2024) perfumery and beauty industry, projected to reach $756 billion by 2029, has long adhered to a "one-size-fits-all" approach.?

Traditional methods of fragrance and cosmetic development lack the personalization necessary to truly cater to individual preferences.?

AI and ML have the potential to revolutionize this industry by enabling hyper-personalization. Imagine a service where customers share their stories, hobbies, lifestyles, and preferences, and an AI algorithm crafts a bespoke fragrance tailored precisely to their unique profile. This level of personalization could transform the consumer experience, fostering deeper brand loyalty and unlocking new market opportunities.

Agriculture: Cultivating Intelligence in the Field

The agricultural sector faces increasing pressure to improve efficiency and sustainability.?

AI and ML offer powerful tools to optimize farming practices and address these challenges.?

Let's imagine for a second a story of someone whose name is Nora whose story exemplifies this potential.?

Having inherited farmland with limited agricultural knowledge, she envisions an AI-powered assistant to guide her through the complexities of crop selection, planting, and resource management. Today no solution exists that provides such services on an end-to-end basis using AI-driven technologies, such as drone surveillance, precision irrigation, and predictive analytics, empower farmers to make data-driven decisions, maximizing yields while minimizing environmental impact.

Government & Politics: Data-Driven Decision Making for the People

The complexities of modern governance demand efficient and insightful data analysis. Let's take an imaginary example: Funmi, the first African American senator in her community, struggles to keep pace with the sheer volume of information required for effective policy making.?

She dreams of an AI-powered system that can analyze political, economic, and social trends, connecting the dots between seemingly disparate events and providing her with actionable insights. This vision of AI-augmented governance could enable more informed decision-making, leading to policies that better serve the needs of the people.?

She can't do that today even using a large set of experts who act as her consultants because of the silos that naturally exist between different fields (i.e. the impact of middle eastern political stability on the quality of medical treatment her voters receive)

Automotive: Towards Safer and Smarter Transportation

The automotive industry is undergoing a rapid transformation, driven by advancements in AI and autonomous driving technology. However, the human element remains crucial.?

Let's think of Jack, a newly licensed driver, enjoys the thrill of driving but recognizes the risks associated with inexperience.?

He envisions a car that not only warns him of potential dangers but also actively intervenes to prevent accidents, particularly in situations where emotions might cloud his judgment. This vision of AI-assisted driving could significantly improve road safety and personalize the driving experience. So he could both continue to enjoy driving while being a safe driver.

Security: Staying Ahead of Cyber Threats

The escalating cost of cybercrime, projected to exceed $12.5 trillion annually by 2025, demands innovative security solutions.?

Let's imagine the story of Mostafa, a security administrator, who is overwhelmed by the constant influx of security alerts and the evolving nature of cyberattacks.?

He envisions an AI-powered system that proactively identifies and mitigates threats, learning and adapting to new attack patterns without constant human intervention and leaving him to use his time to enhance his skills rather than chasing fires and operational heavy workload.

This vision of AI-driven cybersecurity could free up security professionals to focus on strategic planning and complex threat analysis.

Legal System: Automating Justice for All

The legal system is ripe for disruption by AI.?

Our friend John, facing a complex legal case, struggles to choose the right lawyer.?

He realizes that traditional metrics like win/loss ratios and credentials don't tell the whole story.?

He envisions an AI-powered system that analyzes legal precedents, case law, and judicial trends to provide a more nuanced assessment of legal expertise and predict case outcomes allowing him to choose the right attorney for his specific case even if that attorney was not doing as well in other types of cases.?

This vision of AI-augmented law could democratize access to justice and improve the efficiency of the legal process.

Hospitality: Tailoring Travel Experiences to Individual Needs

The hospitality industry, a $4.7 trillion market in 2023 projected to reach $5.8 trillion by 2027, can greatly benefit from AI-powered personalization.?

Julia, a mother and wife, planning a family vacation, struggles to find a destination that meets her specific requirements. She envisions a service that considers her preferences for weather, budget, family-friendly activities, and accessibility, creating a tailored travel itinerary that eliminates the frustration of endless searching instead of just a group of fixed filters that require her to know exactly what she needs to do rather than what she wishes to receive.?

This vision of AI-driven hospitality could transform the travel planning process, creating seamless and personalized experiences.

Education: From Education to Enlightenment

The $10 trillion global education market (projected by 2030) is poised for transformation through AI.?

Nora, a high school student, aspires not just to achieve good grades but to reach true enlightenment. She dreams of an AI system that analyzes her learning style, identifies knowledge gaps, and suggests personalized learning paths that cater to her individual needs and aspirations.?

In addition to that, that system would be her daily assistant suggesting things out of her education system during her day to day interactions, for example, it would show her the definition of "force” and how it acts within a newton system when she is trying to forcibly open a very heavy door.

This vision of AI-powered education could move beyond rote memorization and standardized testing, fostering a deeper understanding and a lifelong love of learning.

Food Delivery: Satisfying Every Craving

The food delivery industry, valued at $232.76 billion in 2024 and projected to reach $637.46 billion by 2034, can leverage AI to enhance the customer experience.?

Sophie, a sweet and sour chicken aficionado, struggles to find dishes that meet her exacting standards. She liked her chicken to be fried, soft from the inside and crunchy from the outside. Sauce needs to be plenty but without turning the whole dish into a soup.

She envisions a food delivery service that understands her unique palate and suggests dishes tailored to her preferences, even going beyond her usual order to introduce her to new culinary delights that she could enjoy and knowing when, where and how to tell her about food and suggestions.?

This vision of AI-powered food delivery could transform the way we discover and enjoy food.

Healthcare & Pharmacology: Revolutionizing Diagnosis and Treatment

AI has the potential to revolutionize healthcare and pharmacology.?

Nadia, experiencing a mysterious combination of symptoms, struggles to find the right specialist. She can afford a specialist and she has health care membership that can pay all the cost but she lives in a country in which general practitioners don't exist and she needs to know which specialist she needs to visit before she can go to them.

She envisions an AI-powered diagnostic tool that analyzes her symptoms and medical history, suggesting which kind of professional she needs to see and even suggesting the best practitioner based on her specific situation rather than a fixed-for-all rating system.?

This vision of AI-augmented healthcare could improve diagnostic accuracy, personalize treatment plans, and accelerate drug discovery.

Industrial Safety: Predicting and Preventing Accidents

Industrial safety can be significantly enhanced through AI.?

Marco, an experienced safety engineer, is concerned about the unpredictable nature of machine failures. He knows from experience that a machine can break at any time without any warnings and that in many cases, that break may not be reported to the manufacturer to issue a recall. Also keeping track of what is going on worldwide with the same machines he is responsible for, is too much for him to handle.

He envisions an AI-powered system that monitors machinery in real-time, predicting potential failures and suggesting preventative maintenance, listening to the other machines worldwide that are connected to the web and at the end, creating a safer work environment.?

This vision of AI-driven industrial safety could prevent accidents, reduce downtime, and improve overall operational efficiency.

Investment: Maximizing Returns with Personalized Strategies

Mostafa, a medical doctor with limited investment experience, seeks a secure financial future for his family. He saved a lot of money from over 40 years of working as a professional medical doctor and want to finally retire while choosing a low risk investment opportunity that gives him fixed income without risking losing everything.

He envisions an AI-powered investment platform that understands his financial goals, risk tolerance, and life circumstances, creating a personalized investment strategy that maximizes returns while minimizing risk.?

This vision of AI-driven investment could democratize access to sophisticated financial planning and empower individuals to achieve their financial goals.

Entertainment: Personalized Edutainment for All Ages

Jenny and Jack, parents of a young child, struggle to balance their son's enthusiasm for video games with their desire for him to engage in educational activities.?

They envision an AI-powered entertainment system that tailors educational content to their son's interests and learning style, creating an engaging and enriching experience.?

This vision of AI-driven "edutainment" could transform the way children learn and play.

Software Development: Automating the Tedium, Unleashing Creativity

Rajesh, an expert software developer, spends too much time on repetitive coding tasks.?

He envisions an AI-powered development environment that automates these tedious tasks, allowing him to focus on creative problem-solving and innovative software design.

Although today we have such tools like autopilot and similar tools, they are still far from perfect yet as more complicated repetitive tasks still require Rajesh to focus his time on what is called: TOIL work.?

This vision of AI-augmented software development could accelerate the development process, improve code quality, and empower developers to create more sophisticated and impactful software.

The AI Bubble: Are We on the Brink of a Bust?

The rapid growth of AI has raised concerns about a potential bubble.?

Many businesses are integrating AI solutions without a clear understanding of their true potential or limitations.?

This indiscriminate adoption could lead to disillusionment and a subsequent market crash.?

The key question is: are we using AI the right way? To avoid an AI bubble, businesses must focus on developing and implementing AI solutions that address real-world problems and deliver tangible value.

The Future of AI: Evolution or Extinction?

The future of AI presents two starkly different possibilities: either a catastrophic bubble burst or a complete technological evolution. There is no in-between.?

The choices we make today will determine which path we take. By focusing on ethical development, responsible implementation, and a deep understanding of AI's potential and limitations, we can harness the power of AI to create a more prosperous and equitable future.

AI and the Economy: The Impact on Jobs

Will AI replace human workers and cause economic collapse? The short answer is yes. The long answer is not really.?

While AI will undoubtedly automate many existing jobs, it will also create new opportunities and transform the nature of work.?

On the other hand, if the trend continues in the sense of trying to replace workers with AI, this would collabse the entire economy beyond repair! Basically once most of the workforce is replaced, the purchase power for individuals would seize to exist! This would be followed by enterprised declaring bankrubcy because they will no longer be able to sustain any revenue as customers would resort into only paying for essentials. As a result, companies that replace workers with AI would end up destroying themselves sooner or later!

The key to navigating this transition is to invest in education and training, equipping workers with the skills they need to thrive in an AI-driven economy.

Jendi.AI: A Personal Journey Towards a Better Future

So what am I personally doing to join the wave of AI? I am working on Jendi AI. A way to combine biometrics, psychological data, nutrition information, exercise, work and personal data and even the impact of quantum field on the biological structure of humans in order to not only have a full understanding into the human mind, but also help people make decisions, having better wellness and more.

The applications that would come from our system are endless, but we chose to focus on preventing stress, anxiety and burnout from happening.

Conclusion: Embracing the AI Revolution

The future of AI is full of both promise and peril.?

By approaching AI development and implementation with a clear vision, a commitment to ethical principles, and a focus on human-centered design, we can unlock the transformative potential of AI and create a future where technology empowers individuals, enhances businesses, and improves society as a whole.