The Badger’s five-year old grandson, full of energy, innocence, and inquisitiveness, has been staying for a few days. It’s been fun, tiring, and a reminder that grandparents can be important influencers for Generation Alpha! It was also a reminder that today’s childhood is vastly different to that of previous generations. The Badger’s grandson considers being on WhatsApp video calls, watching kids YouTube videos, and engaging with technology like phones, tablets, and laptops in classroom and home settings as routine. This wasn’t the case when the Badger was five, nor was it when the youngster’s Millennial parents were that age!
One evening, just before the lad’s bedtime, the Badger was on the sofa engrossed in the news feed on his smartphone. Reports of anxiety that AI is a stock market bubble about to pop had grabbed his attention. Some reports (like the one here), but certainly not all, derived from a report from MIT noting that most AI investments made by companies have so far provided zero returns. This fuelled concerns, existing in some quarters for a while, that AI is a stock market bubble soon to crash. Many of the reports drew parallels between AI and the dot.com crash of 25 years ago. As a professional in the IT sector at that time, the Badger experienced first-hand the dot.com era and its aftermath, and so he became absorbed in his own thoughts about the parallels. Until, that is, his grandson jumped on the sofa, prodded the Badger’s ribs, and asked to watch a ‘Pop goes the weasel’ cartoon. Initially struck by the synergy between ‘Pop goes the weasel’ as a good label for his AI thoughts, a suitable YouTube cartoon was found and the two of us watched it on the Badger’s smartphone. (A kids punk-music version of the rhyme didn’t seem suitable just before bedtime).
Once the youngster was in bed, the Badger cogitated further on the dot.com era and AI. The late 1990s saw rapid tech advances with many investors expecting internet-based companies to succeed simply because the internet was an innovation. Companies launched on stock markets even though they had yet to generate meaningful revenue or profits and had no proprietary technology or finished products. Valuations boomed regardless of dodgy fundamentals, and the dot.com crash was thus, to those with objectivity, inevitable. To an extent, some of the same dynamics exist with AI today. It may be a transformative technology, with the likes of ChatGPT having impressive traction with people, but AI is really still in its infancy striving to show a return on investment in a company setting. The Badger senses, therefore, that AI is likely in sizeable correction rather than dot.com crash territory. This should be no surprise, because the history of tech stock market valuations suggests, to quote the nursery rhyme, ’that’s the way the money goes. Pop goes the weasel’…
