Is AI in a bubble? YES. But that doesn't matter.

Sep 13, 2025

The real problem isn't the hype—it's how terribly AI is implemented in business.

The question isn't whether we're in an AI bubble. We absolutely are. Venture capital is flowing like water toward anything with "AI-powered" in its pitch deck. Companies are slapping chatbots on their websites and calling themselves "AI-first." Executive teams are mandating AI adoption without understanding what problems they're trying to solve.

But here's the thing: the bubble doesn't matter. What matters is that while everyone's arguing about valuations and market corrections, businesses are systematically botching AI implementation in ways that would be comical if they weren't so expensive.

The Wrong Question, The Wrong Solutions

Most businesses are asking "How can we use AI?" when they should be asking "What problems do we actually need to solve?" It's like buying a Ferrari before learning to drive—impressive, expensive, and ultimately counterproductive.

I've watched companies spend six figures on "AI transformation" projects that amount to glorified autocomplete features. They're building chatbots that frustrate customers, implementing "smart" systems that require more human intervention than the processes they replaced, and creating AI-powered dashboards that nobody looks at.

The bubble has created a dangerous feedback loop: AI vendors oversell capabilities, businesses buy without understanding limitations, implementations fail to deliver value, and everyone concludes either that AI is magical or useless. Both conclusions are wrong.

What Good AI Implementation Actually Looks Like

Real AI value comes from automating specific, well-defined tasks that humans find tedious but machines can handle reliably. It's not about replacing human judgment—it's about freeing humans from work that doesn't require judgment.

Consider these examples of AI done right:

Document Processing: Instead of having someone manually extract data from invoices, purchase orders, and contracts, AI can handle the pattern recognition while humans focus on exceptions and decisions.

Customer Support Triage: Rather than replacing support agents, AI can categorize incoming requests, route them to the right department, and provide agents with relevant context and suggested responses.

Workflow Automation: AI can monitor systems, detect anomalies, and trigger appropriate responses—not by making complex decisions, but by following sophisticated but predictable patterns.

Data Analysis: AI excels at finding patterns in large datasets that would take humans weeks to identify, then presenting those insights for human interpretation and action.

Notice what these have in common? They're all about taking clearly defined tasks that require pattern recognition or processing large amounts of information, and handling them consistently at scale.

The Implementation Gap

The problem isn't that AI can't deliver value—it's that most implementations ignore fundamental principles of good automation. Here's what typically goes wrong:

Automating Broken Processes: If your manual process is inefficient, automating it just gives you automated inefficiency. AI amplifies existing workflows, good or bad.

Lack of Clear Success Metrics: "Improve efficiency" isn't a goal—it's a hope. Good AI implementations start with specific, measurable objectives like "reduce invoice processing time from 30 minutes to 5 minutes" or "categorize 90% of support tickets correctly."

No Human Oversight: AI should augment human capabilities, not replace human judgment. The best implementations have clear escalation paths and human review processes.

Technology-First Thinking: Too many projects start with "let's implement this AI tool" instead of "let's solve this specific business problem." The technology should be invisible; the solved problem should be obvious.

The Bubble is Actually Helpful

Here's the counterintuitive part: the AI bubble is creating the exact conditions needed for practical, valuable implementations. While everyone's distracted by the hype, smart businesses can focus on the fundamentals.

The bubble has created an abundance of tools, frameworks, and APIs that make it easier than ever to build practical AI solutions. Cloud providers are competing on AI infrastructure, driving costs down and capabilities up. Open-source models are commoditizing basic AI functionality.

More importantly, the bubble has created urgency around digital transformation that many businesses needed anyway. Companies that have been putting off process automation for years are suddenly motivated to modernize their operations. The AI angle might be marketing, but the underlying work of systematizing and improving business processes is valuable regardless.

What This Means for Your Business

Stop thinking about "AI strategy" and start thinking about "operational efficiency." Look for tasks that are:

  • Repetitive and time-consuming

  • Rule-based but complex enough to benefit from pattern recognition

  • Currently creating bottlenecks in your workflows

  • Generating data that could inform better decisions

Then ask: could automation help here? Sometimes the answer is simple workflow automation. Sometimes it's a bit of machine learning. Sometimes it's just better software design. The specific technology matters less than solving the actual problem.

The Post-Bubble Future

When the bubble eventually pops—and it will—the companies that survive won't be the ones with the flashiest AI marketing or the biggest fundraising rounds. They'll be the ones that used this period to build genuinely useful automation into their operations.

The hype will fade, but the problems AI can solve will remain. Document processing will still be tedious. Data analysis will still be time-consuming. Customer inquiries will still need routing. The businesses that focused on solving these concrete problems while everyone else was chasing the next AI unicorn will find themselves with sustainable competitive advantages.

The bubble doesn't matter because bubbles are about market perception, not fundamental value. And the fundamental value of AI isn't in replacing human intelligence—it's in handling the routine cognitive work that prevents humans from focusing on what they do best: thinking creatively, making complex decisions, and building relationships.

So yes, we're in an AI bubble. But instead of worrying about when it will pop, focus on building something that will still be valuable when it does. Your future self will thank you for automating those boring, repetitive tasks that are eating up your team's time right now.

The bubble is just noise. The opportunity to solve real problems is the signal. Don't let the noise distract you from the work that actually matters.

Ready for growth without the headache?

Let's work together.

Ready for growth without the headache?

Let's work together.

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