Marc Cooper is the Chief Executive Officer of Solomon Partners, a leading investment banking advisory firm founded in 1989.
Is the AI build-out boom drifting dangerously into bubble territory? It’s an intriguing question—and one that’s ricocheting through markets. But it also may miss a larger truth: AI isn’t a passing trend or a product cycle. It’s what economists call a general-purpose technology—a sweeping innovation, like electricity or the internet, that transforms every sector it touches.
True, market observers have reason to be concerned that the torrid pace of AI investment for data centers and top talent may be running way too hot. An eye-watering $7 trillion in capital outlays on data centers will be required through 2030 to keep up with AI-generated computing demands, according to McKinsey.
Looking over the horizon, whether markets overshoot or retrench in the near term is almost irrelevant. The broader arc is unmistakable: This is a life-changing disruption, a transformation of how we work, compete and even think.
In my own experience, AI has already become indispensable. I find myself bypassing the browser entirely and going straight to a conversational tool like Microsoft Copilot. What once required a dozen searches now takes a single prompt. And I am not alone. Traffic from traditional search engines like Google is dropping as AI usage grows, with Gartner predicting a 25% drop in search engine volume by next year. That shift—from search to dialogue—is not a novelty. It’s a window into a new productivity paradigm. Multiply that across industries and you begin to glimpse the scale of what’s unfolding.
Of course, like every technological revolution, there will be winners, laggards and lessons learned. Early adopters may pay a premium. Some projects will flame out. But over time, capabilities compound, infrastructure improves and the impossible becomes routine.
I remember the early days of the internet—the so-called “World Wide Wait.” Streaming a live football game on your phone would have sounded like science fiction. Today, it’s background noise. I believe AI will follow a similar path: from clunky experiments to ubiquitous utility.
The challenge—and opportunity—for leadership teams is to engage with AI not as a speculative asset, but as a strategic imperative. It belongs on every board agenda, every executive off-site, every M&A discussion. From my perspective, the evolution will be a marathon rather than a sprint. While there will be bursts of innovation, the true value of AI will be in how it is continuously integrated in smaller ways that impact larger functions in the longer term.
The cost of inaction is steep. If your competitors are integrating AI into their workflows and decision-making while you wait on the sidelines, you’re not just behind—you’re at risk of irrelevance. In the initial phases, those left out of the productivity race may find it very hard to catch up.
At the same time, the social dimension cannot be ignored. AI has the potential to be the most profound productivity enhancer in human history. But if those gains accrue only to capital owners, we risk deepening inequality and igniting the kind of class tension that destabilizes societies. Ensuring broad participation in the upside—through education, reskilling and policy innovation—is not altruism. It’s risk management.
We are entering uncharted territory, one that raises profound questions. How do we redefine work, meaning and achievement in a world where machines handle more of the tasks that once defined us? That’s not just a dystopian forecast—it’s a call to reimagine purpose.
So yes, markets may get ahead of themselves. There will be corrections, hype cycles and moments of doubt. But the underlying story is bigger than valuations. AI isn’t going away. It is evolving, expanding and integrating into the very fabric of economic life.
As I see it, the smart play for business leaders and investors is not to get too distracted by the great AI bubble debate but to carefully prepare for the coming transformation. AI, both its promise and peril, is likely to be the new business reality for years ahead.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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