How to prepare for the AI bubble bust

Last week, my article revolved around how the AI boom (today) resembles the dot-com boom (over 2 decades ago) that ended up busting at end of the 1990’s.

Many jobs were lost, enormous amount of money was lost and trust to the technology (to some extent) was the aftermath. I shared some practical examples and linked them to our present situation (ie AI vs Dot-com). Some readers agreed with the thoughts and related examples, while others debated and argued that AI is entirely different.

Those that disagreed literally provided no realistic reasons to their feedback yet I can confidently state that most of them have not actually lived the experience that I personally had.

In fact, I was among those who have benefitted and sold internet business at the time.

The proof is in the pudding. Irrespective of whether AI bubble will bust or not, my article today will focus on how one, from the perspective of whether he/she is a student, employee, employer or a business man/investor, can be prepared in whatever direction the AI bubble will end up heading to.

First, as a student, choosing the right AI skills is the key. Students need to ensure that whatever they are learning remains relevant after the bubble fades.

They need to build a strong foundation in problem-solving, digital literacy and domain expertise alongside AI knowledge. Students who invest in adaptable, future-proof skills will be the professionals leading tomorrow. Students need to avoid only exploring AI consumer apps, but also learning about anything that relates to how AI works and how it can transform industries in the future.

Secondly, as an employee, the need to protect themselves by future-proofing their careers is paramount. Developing transferable skills that includes but is not limited to adaptability, critical thinking and communication while also learning how to integrate AI into their work is vital for their success.

Employees need to position themselves as resources within their respective organisation who can apply AI into their work in order to remain valuable no matter how the market shifts.

Thirdly, as employers, it is important to invest and deploy AI into areas that clearly improves efficiency, productivity and/or customer experience. Employers must avoid locking their companies into unproven AI technologies that not only wastes enormous amount of money, but productivity and their competitiveness as well.

Furthermore, employers must ensure they prioritise their employee’s reskilling in order for them to adapt with AI revolution.

Lastly, for businessmen and investors, avoiding the temptation of chasing the hottest AI stocks and putting/investing money into startups with big, bold and beautiful promises is important. Because history has shown already that hype driven investing can end badly.

I am not only referring to dot-com era but in almost every other fashion and trends. Instead, investors and businessmen alike should focus on companies and AI stocks with proven revenue models, practical use cases and a clear path to profitability.

To conclude my article and specifically on the subject of AI bubble bust, let me emphasise that one cannot avoid the pain that can result (especially if invested on the same) if the bust would ultimately occur. Following the notes that I have shared above and being prepared would lessen the impact (if any) and keep one ahead of the pain.

You lose nothing to be prepared, but almost everything to riding the AI wave without a life jacket. Until we catch up again next week, stay safe and vigilant.