AI investments are surging, but may disappoint investors due to lack of improved performance.

From Investing.com: 2025-03-02 23:03:00

AI investments have surged, but returns may disappoint investors in the future, according to experts. Despite increased spending, AI model performance has not significantly improved. This could lead to margin compression for AI model builders and suppliers. Companies are realizing current AI products may not be as transformative as believed. Microsoft CEO Satya Nadella notes AI hype has yet to impact the economy. The AI boom has driven markets to potentially risky valuations, with concerns of a “super bubble” looming.



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