Artificial Intelligence May Be the Most Overhyped Technology of Our Generation

The artificial intelligence boom is becoming worrying as levels reached appear detached from economic fundamentals in ways that mirror the dot-com bubble of the late 1990s. Of late, technology companies have committed to spending over one trillion dollars in AI infrastructure over the coming years. The investment is not the worry; it is the fact that many organizations that have invested in generative AI are seeing zero return on their investments, as supported by research from the Massachusetts Institute of Technology research posted in August 2025. The MIT report, titled “The GenAI Divide: State of AI in Business 2025,” found that only five percent of integrated AI pilots are extracting measurable value. Kristalina Georgieva, Managing Director of the International Monetary Fund, also issued a warning in October 2025, telling audiences “buckle up,” valuations are heading towards levels we saw during the bullishness about the internet 25 years ago.” In August 2025, even Sam Altman, CEO of OpenAI has acknowledged the bubble dynamics, telling reporters, “are we in a phase where investors as a whole are overexcited about AI? My opinion is yes.” These factors, which are also supported by the Shiller Cyclically adjusted price-to-earnings ratio reaching its second-highest level in history ,are reasons for the title of this article.