Recently, the focus has been on artificial intelligence The debate over the (AI) bubble has never stopped in Silicon Valley and Wall Street, and now it is gradually becoming a hot topic among members of Congress in Washington.
Since OpenAI CEO Sam Altman stated in August that investors were "too excited" about the technology, the debate surrounding an artificial intelligence bubble has intensified in the tech world. There are also concerns that tech companies may be creating a cycle of spending when investing in AI , ultimately failing to recoup their current massive investments.
However, many in the tech industry still believe there is no bubble, pointing to continued strong demand for AI products. So what do politicians think?
Hawaii Democratic Senator Brian Schatz stated, "Are we in an AI bubble? I don't know. Even experts in the field of AI don't know."
Massachusetts Democratic Senator Elizabeth Warren said that while she was unsure whether a bubble existed, she was concerned about “how much of the stock market and economic activity nationwide is being driven by this industry.”
“If it’s overvalued, when the bubble bursts, it will be felt everywhere. This centralization makes the economy much more vulnerable than in other situations,” she added.
New York Democratic Representative Alexandria Ocasio-Cortez is one of the few lawmakers to publicly discuss a potential AI bubble. During a hearing last week, she stated that we may be in a “huge economic bubble” that could pose a “threat to economic stability similar to that of 2008.”
“If the bubble bursts, we shouldn’t even consider a bailout,” she added.
The bubble debate is slowly creeping onto Capitol Hill as the Trump administration and some Republicans in Congress seek ways to make it easier for the AI industry to do business. When asked if he was worried about a bubble, President Trump largely ignored the question.
“I worry about everything. I hope it will be very good. But if it isn’t, we have guarantees,” he said.
Texas Senator Ted Cruz, chairman of the Senate Commerce Committee, has positioned himself as an ally of the artificial intelligence industry on Capitol Hill. Last week, when asked if he believed there was a bubble in the AI industry, Cruz was cautious.
"Will there be uncertainty? Will there be economic challenges? Of course (there will be). But for such an important technology, it is in our interest for the United States to win this race," he said.
Ocasio-Cortez, on the other hand, argues that there is a link between a potential AI bubble and economic motives that make artificial intelligence technologies more exploitative.
“These companies can exploit people’s deepest fears, secrets, emotions, and relationships in exchange for empty promises in exchange for their profits,” he said.
But for some who want to see stronger regulation of artificial intelligence, the issue of a bubble is largely irrelevant.
Missouri Senator Josh Hawley said, "Whether there's a bubble or not, it doesn't matter. We need to focus more on the impact on working people."
(Article source: CLS)
