Recent discussions have highlighted a potential shift in the AI landscape. IBM’s CEO, Arvind Krishna, has emphatically stated that there is no AI bubble. He argues that much like the social media boom, the current focus is on capturing subscribers from a global audience of 7.5 billion people.

In a recent interview on the Decoder podcast with Nilay Patel, Krishna pointed out that many players in the space are convinced of the market’s robustness, noting, “This is a race towards who can get more and more of the world’s 7.5 billion people to become subscribers.”

Key insights from Krishna’s comments include:

• The weakening belief that the AI industry is in a bubble, mainly due to explosive growth in subscriptions.
• The importance of network effects and scaling to gain a competitive edge in the AI ecosystem.
• The notion that current investments should focus on broadening user engagement to sustain profitability.

These statements provide a refreshing counter-narrative to the prevalent skepticism surrounding AI, framing it as an evolving field rather than a fleeting trend. As developments progress over the next several years, addressing user engagement will be vital to determine the industry’s future.