The Irony of an AI Bubble. Is AI Itself Self-Determining a Boom or Bust?

Has the widely discussed AI bubble led financial services organisations into a high-risk and high-stakes position - which ironically may itself have AI at its core? Is AI self-prophesying a continued AI boom? Or is it predicting an AI bubble about to burst?

With more commentary on a potential AI bubble from an AI tech giant (this time from Sundar Pichai, CEO of Google), this short video explores the irony - and more importantly risk - of the central role of AI in predicting an AI boom or an AI bubble about to burst?

It’s a scenario that raises plenty of questions for board executives and senior leaders not only about their own operations, but also of their partners, suppliers, clients and competitors.

What does AI base its “predictions” on?

What is AI’s “incentive”?

What accurate and relevant historic data has AI “learned” from?

Are financial services companies fuelling the fire by using AI in this hamster wheel?

What (human) controls are in place to provide the oversight?

How do leaders prove to UK Regulators (FCA/PRA) that governance mandates a final override?

If the majority of FS organisations are using highly correlated AI models, are we facing a potential domino effect with a systemic risk of a complete market collapse?

And what are the wider implications on economies and market confidence if an AI-fuelled crash ripples beyond the tech sector?