The Institutional Risk Analyst

The good news of sorts is that the deflation of the AI financing bubble will probably see a continued decline in LT interest rates. If you work in banking or residential mortgages, the deflation of the AI bubble is very good news. For the past six months, LT interest rates have been pushed higher by the surge in financing for AI-build outs, both public and private, and also the interest rate hedging that finance providers have put in place to protect them from adverse market

Most public companies are so invested in the false gospel of AI that they dare not even hint at the truth, namely that the vast majority of AI projects will never be profitable or even relevant. As LeCun notes, consumers will benefit from more robust search tools, but the AI that emerges in the next decade will be too feeble and too fallible to be deployed by business. Recall the costly fiasco of the early AI charade called "Watson" from IBM.