
There is a lot of hype surrounding AI. Hundreds of billions of dollars are invested in developing AI. The hype around AI reminds me of the dotcom burst. A lot of the excitement about AI will fade. A lot of investment in AI will be lost. The use of AI in mainstream media is about 2 years old. A lot of good will come of AI. Almost everyone has a computer at home. People tend to use their computer at home differently than a computer they use at work. Most of my computer use has not been work related. I’ve earned some money designing websites 25 years ago. The money I earned designing websites I made at home in my home office.
It’s not simple to explain how AI is used because there are very many uses for it. The first thing that comes to mind with the use of AI is in search on a search engine. When I type in a question or statement to a search engine I receive an immediate response.
It’s like dropping a stone into still water. There is a ripple effect. The first ripple is the response to the data I typed. The first ripple is what I’m looking for, subsequent ripples are responses to the same data I typed. Subsequent ripples I receive in a variety of media messages and ads that have something to do with the data I typed. I might receive a ripple of information in response to data I typed to a search engine in a social media feed.
The effect of the data I type has a more intelligent response from my computer and from my phone. Data I type onto my computer AI amplifies in a variety of responses. AI is manufactured in modern computers and are more intelligent than older computers. Computers calculate and compute input. With AI input a computer receives is better at mirroring human behavior.
8/22/2025
The AI bubble in relation to the dot com bubble is very different. Remember that at the time of the dot com bubble where many investors in the internet in America and around the world lost billions of dollars e-commerce was more of an idea than anything else. Banking online was in it’s infancy. Buying products from a website to be shipped to your address was hopeful and there were many many hurdles before the general population were ready willing and able to pay for products online. The AI bubble that appears to be fizzing is different in that the internet has proven itself to be a viable and effective technology for e-commerce that includes buying and selling just about anything on websites around the world.
I believe with AI the many billions of dollars invested in it won’t be perceived as big of a loss as the dot com bubble burst because the internet is where everyone goes to interact with AI and the internet has proven itself to be a reliable and efficient at e-commerce. In 2025 Investing in starting a business on the internet has many more similarities to investing in traditional brick and mortar businesses than during the dot com bubble and burst.
Ultimately an investment in AI is an investment in technology that relies very much on human input. There is risk in investing. Surely there will be investors who make great financial achievements with AI. AI has grown by leaps and bounds from when it started. This is good. AI will help business and consumers alike. It’s important to be very careful when investing. AI was narrated as the next big thing in technology and in many ways it is. That doesn’t mean everyone can expect to make a profit with it.



