On Bloomberg TV Ray Dalio was talking about the one thing that everyone is now starting to believe – that Artificial Intelligence has created a bubble – and that bubble is going to burst any day now – people who use AI are starting to realize that even though AI is the future and it is extremely powerful, every company that sells AI or adopts AI in their work flow is spending vastly more money than the profit they can make from AI – hence the bubble which is about to burst!
For the average consumer of goods that we can buy in Walmart, there is a silver lining – in the next 5 years we are going to see the cost of goods manufactured in China drop by 20% to 50% – I firmly believe this is true – because even as we speak China has millions of industrial robots that are manufacturing goods cheaper than any other country can do; right now humans are programming the robots – but soon these industrial robots will be programmed using AI.
See the video above from France 24 is a high end example of industrial robotics in China, but there are millions of small manufacturing facilities all across China which use much simpler programmable machines to do manufacturing for the goods we buy at Walmart and these machines are much simpler than the video above – but they all have one thing in common – that humans are controlling the programming of the robots.
This is exactly the type of problem that AI excels in solving – but I don’t think AI is used across China to program industrial robots because of cost issues. But when the AI bubble bursts – all of a sudden the world will have a glut of AI data centers/capacity which can be purchased cheaply and that is when AI will become cheap enough to use, so to put it another way:
If the AI bubble bursts that is great news – because then AI will become cheap enough to use in everyday life and – we will see cheaper goods in Walmart and cheaper productivity software world wide!