Criticism has emerged that overheated expectations and an investment frenzy surrounding AI rely on belief and narrative more than the reality of the technology.

On Aug. 4 local time, electric-vehicle outlet Cleantechnica published a column examining magical thinking in modern society, citing the AI bubble alongside bitcoin and the spread of conspiracy theories. It pointed to a trend in which retail and institutional investors, venture capital and corporate executives are pouring money into the sector. It presented as examples expectations that riding the AI boom could make people billionaires, and beliefs that robots and AI will do all work and usher in an age of abundance within 10 years in which money is no longer needed.

Cleantechnica viewed those expectations not as technological optimism but as a trend closer to unrealistic fantasy. It said that the more it looked into discussions around the AI bubble, the more it was reminded of how easily people are drawn to magical thinking and absurd fantasies. Many people do not believe basic facts and truths, it said, but are easily attracted to more sensational and unrealistic claims.

It also mentioned bitcoin in the same context. While bitcoin is currently recognised as having great value, it was described as a currency of fantasy in the end. The reasons given were that it is not used like real money and its value is maintained only as long as people continue to believe it has value. It was also reported that bitcoin has fallen 44 percent over the past year.

AI is genuinely useful and can help people in many fields, but it is not perfect, produces hallucinations and still requires humans to check its output. The column also noted that while huge sums are flowing into AI, there are parts where no clear path to investment returns is visible. It viewed such investment as close to the same kind of fantasy and magical thinking.

Recently, James Mackintosh (제임스 매킨토시), a senior market columnist at the Wall Street Journal, wrote in a column that SK Hynix ADRs trading at much higher prices than the company’s Korean shares is a phenomenon that is hard to see in a normal market, and called it another warning sign of the AI investment frenzy. The assessment was that it is a signal that enthusiasm for AI investment has overheated.

In connection with this, the WSJ reported that Taiwan semiconductor company TSMC is also showing a similar phenomenon. The premium on TSMC ADRs stayed around an average of 3 percent from 2010 to 2020, but since 2022, when AI investment enthusiasm spread after the release of ChatGPT, it has risen to an average of 15 percent.

AI infrastructure is expanding, but the analysis is that warning bells over overheated investment should be heeded.