Does talk of government backstops mean an AI bubble is about to burst?

""Companies don't need to rewrite their strategy, but market volatility is a stress test of AI investment. The large tech companies recognize that the long-term demand for AI infrastructure is very strong. Ilya Rybchin, principal at financial advisory firm BDO USA, said that CIOs shouldn't be worried about the technology becoming obsolete or vendors disappearing. "Customers should be worried about the anemic return on their own AI investments, irrespective of how their vendors are performing or what the media is saying about their vendors.""

""Freeze AI procurement He had some stark advice. "Companies should freeze new AI procurement. They should stop buying tools until they can prove they're getting value from the ones they have." He added that many companies are buying multiple AI platforms without using any effectively. "It's like buying three chainsaws when you haven't learned to use the first one," he said.""

Big tech customers should remain pragmatic and avoid panic because long-term demand for AI infrastructure remains strong. Market volatility functions as a stress test of AI investment rather than a reason to rewrite strategy. CIOs need not fear technology obsolescence or disappearing vendors, but should worry about weak returns on internal AI projects. Companies are advised to freeze new AI procurement until they can demonstrate measurable value from existing tools. Many firms are buying multiple AI platforms without using any effectively. Organizations should prioritize extracting value from current deployments before expanding vendor portfolios.

Read at Computerworld