Is AI heading into a bubble, plus is it safe for SEO & Marketing?

There may be strong indications that the artificial intelligence (AI) sector — including hardware, software, infrastructure and the companies surrounding it, may be entering bubble territory, if you believe a lot of the news articles floating around presently.
Lately my Facebook and Instagram feeds are choked with AI related advertisements and articles. As a website hosting, SEO and marketing business owner, I am weary of new fads especially with SEO promises of gold under the rainbow. Hearing about the expected productivity gains and business returns from AI need to be taken with a grain of salt. AI promises a lot relative to SEO and general marketing, but I am reluctant to jump on board yet, as experience tells us quick gains are often the result of black hat functions, that Google will clamp down on with either a website blacklisting or worse.

I prefer to sit back a while and see where things land. I read even the Bank of England has flagged the risk of a “sharp correction” given the valuation levels of AI-focused tech firms. Investing big amounts on new untested providers both as a business owner, or as an investor has its risks, I suspect.

A positive argument for AI and against bubble possibilities is that AI systems are genuinely being deployed in many industries (healthcare, finance, logistics, customer service). So unlike bubbles that are entirely hype, AI may have a stronger chance of short-term success compared to past hypes, such as the dot.com bust 2 decades back.

One way or another like the dot.com bust, the infrastructure being built (chips, data‐centres, models) may under-deliver short-term but should lay the groundwork for bigger waves in the future. Even after all the dot.com hype and then crash, energy and infrastructure development did create companies such as FB, Instagram, Amazon, and also helped lift Google bottom lines to stratospheric levels.

Overall, I would say take it slow with AI, if you cannot afford to lose your hard-earned dollars, yet learn quickly the safest way to get on board, or at least be ready to jump on when the time is right, and the search engines approve. With any major new change in business there will be losers. Small companies with limited capital wanting to boost rankings should tread carefully. You don’t want a ‘black hat’ rating placed on your website by the search engines. Also, is AI rock solid on legal matters in its current state, a subject for another discussion on liabilities for users.

Best be patient, don’t believe all that you hear, but keep up with the times and step in when it is safe to invest for your business and/or into the market. There will be many sad faces in the short-term is my opinion. Caveat emptor!

Jack. W