Bank of America pushes back against rising AI bubble warnings, noting that critics are overlooking the scale of the technology shift underway.
In a new CNBC interview, Haim Israel, BofA’s head of global thematic research, says the current debate is anchored to near-term apps and quarterly results instead of the broader transformation now unfolding across industry, science and national priorities.
Israel highlights that the attention on chatbots and productivity tools distorts the magnitude of what’s coming.
“Are we in a bubble or not? I urge you to think that the story is so much bigger than the next quarterly numbers, the next investment… We are making a mistake again and again with AI.
When we think of AI, we think about those apps that can summarize our email, build our presentation, or make our work a little bit more efficient. This is not why we’re spending the trillions of trillions of dollars.
AI is so much bigger.
To go and say that AI is all about the ChatGPTs of the world and applications to summarize my emails, to say that we built the internet revolution to have Spotify, or the mobile revolution to book an Uber. It’s only one application. The story is bigger.”
The executive says AI’s scope today is beyond consumer apps, pointing to sectors where technology is already being deployed to reshape core processes.
“We are looking at AI simulations that can create drugs, can calculate the weather, can dramatically improve food consumption… that can do so many things that humans can’t do in a better way, that we’re about to change everything, create new materials.”
Israel urges naysayers to zoom out and look at the potential impact of AI over a long arc of time.
“We’re already starting to see that, improving the industrial revolution. We are so focused on the quarterly numbers, on the very small application that we are seeing today, that we are really missing the big picture.”
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