The (current) AI sell-off
2024-08-06 | tags: thoughts AI
a close-up image of a stock chart.  The price line is in red and is taking a sharp dip. Photo by Anne Nygård on Unsplash

(Photo by Anne Nygård on Unsplash )

You've probably seen some headlines about AI stocks recently losing two trillion dollars in value.

What does this mean, then? Is AI toast?

It helps to keep three things in mind:

1/ Remember that these are stock prices. Unless you've been trying to buy or sell shares, this is an unrealized gain or loss. Prices still have plenty of room to move in either direction.

2/ That said, stock prices reflect the market's sentiment about the companies in question. In turn, that may reflect the wider population's view on AI's value and longevity. Losing this much value is a sign and we should pay attention to it, even if we aren't trying to buy or sell those shares right now.

3/ Should you be afraid? Maybe! If your company is selling AI vaporware (or building vanity AI projects for internal customers) then expect to face more scrutiny going forward. On the other hand, if your AI-driven tools and services are solving real business problems and providing real value, you should be in a good spot.

And what if you are building those vanity AI projects? There might still be some time for you to surface real use cases. Reach out. I can help with that.

The same holds if you're checking on someone else's AI before that investment or acquisition. One of my AI assessments might reveal some interesting finds…

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