The real value of Artificial intelligence
2 viewsAbstract
Scholars and Financial experts alike, keep comparing the current Artificial Intelligence success to the speculative bubble of the previous .com era. While there is limited resemblance, however this research scientifically shows that the current AI dominance over the equity market is far from a mere speculative bubble. This research examines statistical and financial metrics such as revenue to Capex ratios, Cash flow and free cash flow margins to demonstrate that, while limited speculation does exist and investors cannot be banned from riding the AI wave, yet the economic utility and the significance of AI is real and supported by solid evidence. The extremely rapid integration of AI in different sectors, especially those not related to technology directly such as healthcare and finance only further support the arguments of the study. Finally, the paper discovered a new S Curve economic phase, and based on the data gathered and analyzed, we boldly claim that the AI era is not a bubble that is about to be burst, but a new long lasting phenomenon that will change, not only the equity market, but every single other sector forever. This bold claim is supported by the increase in realized earnings and operational efficiencies, that are only to increase further in the future.
Keywords
A New Economic Era, Ai Bubble, Artificial Intelligence (AI), Dot Com Bubble, The Future Of Ai