The chatter that the AI Mania bubble is next to pop is growing louder. 

What if the benefits of Artificial Intelligence and its real-life application are exaggerated? 

Artificial Intelligence AI is an oxymoron since it is artificial it is not real. Simulated machine intelligence in its most simplistic form is not much more than a state of being on and off, binary zeros and ones.

AI has no consciousness, and it is either on or off. 

The dualism of human intelligence is that the brain, a physical object and the mind, a non-physical object, are distinct.

The mind provides a state of being and consciousness, and the state of being aware is a facade of human intelligence.   

AI Mania bubble

“AI has no consciousness, and it is either on or off”

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Could AI Mania, excessive and unrealistic enthusiasm for AI, be soon having a reality check? 

AI in warfare leads to crimes against humanity.

An AI bot is neither self-conscious nor can it have a guilty conscience.  

AI-assisted targeting is allegedly being used by the IDF, in the Gaza Strip to rapidly and automatically perform much of the process of determining what to bomb. Humans deciding whether to bomb a residence block to target a Hamas combatant ponder about civilian casualties. 

AI-assisted targeting in warfare results in International Criminal Court ICC arrest warrants for the top brass and leaders.

AI mania reality check in the fast food industry

On a lighter note, AI touted as the future of the fast food industry, has resulted in comical viral videos of wrong orders.

Automated order-taking (AOT) mess-ups are plentiful. 

“Do you want bacon with your ice cream?” 

Not so lucky for another customer whose ice cream was fused with bacon.

“Automated order-taking (AOT) mess-ups are plentiful”

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In another incident, AI technology added 166 GDP worth of chicken nuggets to another customer order.

For more amusement, social media TikTok has its fair share of automated order-taking (AOT) mess-ups.

Cursing a McDonald’s robot, a woman is trying to order Vanilla ice cream and a bottle of water from AI assistants and is given several icecreams, ketchup sachets and two portions of butter.  

“the world’s largest fast food restaurant could see no profit benefit from utilizing AOT, despite having economies of scale”
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AI mania hits a reality check with the world’s largest fast food, ending its AOT test and reverting to human customer service

McDonald’s has decided to terminate its two-year-old test of drive-thru, automated order taking (AOT) that it conducted with IBM. 

So, in July, the Chicago-based fast-food giant will be removing AOT from more than 100 restaurants that have been using it.

“While there have been successes to date, we feel there is an opportunity to explore voice ordering solutions more broadly,” Mason Smoot, chief restaurant officer for McDonald’s USA, said in the system message. “After a thoughtful review, McDonald’s has decided to end our current partnership with IBM on AOT, and the technology will cease to be used in all restaurants currently testing it no later than July 26, 2024,” he wrote. 

So, the world’s largest fast food restaurant could see no profit benefit from utilizing AOT, despite having economies of scale.

Reading between the lines, if the largest fast food operator can not find a way to use AOT technologies profitably, then even more so for the entire smaller fast food businesses. 

But McDonald’s sees benefits in the voice ordering system.      

“As we move forward, our work with IBM has given us the confidence that a voice-ordering solution for drive-thru will be part of our future,” McDonald’s said. “We see tremendous opportunity in advancing our restaurant technology and will continue to evaluate long-term, scalable solutions that will help us make an informed decision on a future voice ordering solution by the end of the year.”

AI mania in healthcare 

There are ample scholarly articles on the limitations of AI in healthcare. 

AI systems in healthcare are making mistakes, malfunctioning, and even breaking down. The mistakes have entailed biased outcomes, hallucinations, and AI drift, which could potentially seriously harm patients. Many healthcare professionals now demand measures and increased awareness to counter the shortfalls of using AI.

“As of June 18, year to date, insider selling reached $700 million” – Win Investing

Has AI mania peaked as its technology limitations become evident in real-world applications?

Nvidia, an AI tech chip manufacturer with a market capitalization of $2.9 trillion, making it the world’s most valuable company on June 18,

The stock is up 750% in just two years. 

The last Nviidia’s stock rallied like that, its stock price crashed by 50%.

As noted a month ago, the stars could be aligning for AI mania Bubble bursts

In just three days last month, June, the darling of AI stock, Nvidia lost an eye watering  $646 billion, the worst one-week loss for a single company in history.

But the bullish view is that it is no big deal, just a correction, bearing in mind the stock Stella performance over two years.

Meanwhile, the bears believe AI mania has peeked, and Nvidia’s recent fall could be the beginning of the AI bubble pop.

The bears could have a point; Nvidia insiders are selling

As of June 18, year to date, insider selling reached $700 million, with more than a third of this occurring right after NVDA’s May 22 quarterly earnings release. Moreover, zero insider buying during this period took place. 

Meanwhile, Nvidia bought $700 million of its stock, with more than a third occurring after NVDA’s May 22 quarterly earnings release. 

If the company was ultra bullish about AI, why is it doing stock buybacks and not investing in plant and machinery CAPEX or research and development?  

Mania tends to peak with peak showmanship, and AI mania is no exception

Images of CEOs wearing black leather jackets photographed with celebrities often are a red flag that the bubble is about to pop.

We often ponder the idea of an AI chip stock with such a high valuation with its main Fab in Taiwan, given China-Taiwan tensions.

Nvidia rode the AI mania and could also be the stock worse impacted by the AI mania bubble pop.

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