Is the AI bubble about to burst?

It’s a new technology that everyone’s desperate to get a piece of. CEOs say it’s going to change how we work, access information, and even relate to each other. Investors are showering companies with money - even when they aren’t turning a profit. You might think this is the story of artificial intelligence. But it’s actually what happened during the dotcom bubble, back in the late nineties. When the frenzy of investment ended, the bubble burst. Companies went bust and trillions of dollars of investment capital evaporated. Today, AI companies are raising over a trillion dollars in investment, with very little revenue to show for it. Is the dotcom bubble a vision of our future? Has the AI hype outpaced its profits? And if the bubble bursts - what does it mean for the rest of us? This week Ayeisha Thomas-Smith is joined by Eleanor Shearer, senior research fellow at Common Wealth and Carsten Jung, interim associate director for economic policy and AI at the Institute for Public Policy Research. Follow our Instagram: Follow our Tiktok: Produced by Katrina Gaffney and Margaret Welsh. The New Economics Podcast is brought to you by the New Economics Foundation. Find out more about becoming a NEF supporter at: neweconomics.org/donate/build-a-better-future New Economics Foundation is a registered charity in England and Wales. Charity No. 1055254

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Is the AI bubble about to burst? is an episode from Weekly Economics Podcast by New Economics Podcast.

This episode is 00:40:50 long.

This episode was published on Nov 24, 2025.

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