Stability AI CEO: AI could be the biggest ‘bubble’ of all time

Stability AI CEO Emad Mostaque said in a statement that the future of artificial intelligence (AI) is not very bright. Seeing artificial intelligence as a financial bubble, Mostaque and Stability AI are the companies behind Stable Diffusion, one of the other popular productive artificial intelligence tools besides OpenAI.

AI could be the biggest bubble in history

According to the CEO of open-source artificial intelligence company Stability AI, artificial intelligence will be the biggest bubble of all time. Emad Mostaque, CEO of Stability AI, said about artificial intelligence in an interview: “I think this is going to be the biggest bubble of all time. I call it the ‘dot AI’ bubble (after the dot-com bubble of 2000) and it hasn’t even started yet.” Mostaque added that AI is still in its very early stages and is not ready for mass adoption in industries such as banking.

Generative AI is catching the attention of many academics, board executives, and even students with its ability to generate human-like text and visual content from scratch in response to user prompts using large amounts of data. Artificial intelligence is nothing new, but the era of productive artificial intelligence that started with ChatGPT is rapidly advancing with tools such as Google Bard, Microsoft Bing, Dall-E, Stable Diffusion and Midjourney.

“Banks should adopt artificial intelligence”

Mostaque said the total amount of investment required for AI will likely be $1 trillion because it “is more important as information infrastructure than 5G.” He also suggested that banks like UBS should embrace the technology because it’s a “big market.” Mostaque states that artificial intelligence is not yet ready to be used on a large scale in large industries such as financial services, but they can see the benefits.

Mostaque said companies that don’t properly use AI in their businesses will be “punished” by the stock market. In fact, we saw an example of this recently: Google lost $100 billion in a single day after Bard provided false information in a promotional video.